If share price volatility equaled risk, then investing in private companies would be nearly risk free simply by virtue of there being no active price quotation for the shares!
Not exact matches
Banks, which lend heavily to the energy sector and represent a rather large
share of the Canadian market, would see less earnings
volatility if oil
prices were to stabilize.
He said he would not try to convince investors to buy Tesla stock and told day traders to sell out
if they did not like the
volatility in the
share price.
If one is right on the commodity (and has the patience), the leverage contained in the
share price appreciation is superb, and usually occurs without the attendant
volatility of the futures and / or options markets (as fun as they can be).
Barclays — Many Binary Options traders will occasionally include Barclays Bank in their weekly or monthly trades, and with the
share price of this company always prone to massive
volatility there are plenty of winning trades to be placed
if you predict the way they will swing at any given point in the day.
Even
if you sincerely believe a company isn't a value - trap, how long will you be comfortable staring a negative RoME in the face, while the
shares plumb new depths in terms of
price &
volatility?
But I remain confident Record's current fundamentals (& subsequent technicals) will still propel the
share price significantly higher from here (with a potential significant long - term AUME growth kicker
if / when
volatility elevates & global macro / FX policies diverge more radically).
The put
prices will likely be much more volatile than the stock
price, but they can actually be a lower risk trade
if you can handle the mark - to - market
volatility and they can be a good way to try and enter a stock at a lower
price, as Warren Buffett did with some of his acquisition of Burlington Northern Santa Fe
shares prior to buying the entire business.
I don't always get the best
price (
if I was buying HHC I would have waited until mid Nov and purchased around $ 45) but I feel like large sellers pummel stocks and often give me better average
prices and confidence to buy more
shares if I wait until
volatility is lower.