Sentences with phrase «long underlying asset»

A covered call option is a contract sold or «written» on a long underlying asset owned by the call option writer, for a premium.

Not exact matches

A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.
However, our analysis suggests that their underlying properties would have also provided them with more resistance against rising inflation over the long term than the major asset classes.
Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.
If you just owned the underlying assets directly, you would cut out all of those obnoxious fees that act like a tapeworm on your portfolio, slowly siphoning off your long - term wealth.
The idea is to select a long and short combination of underlying shares or tradeable assets.
Then after a self - reinforcing cycle that boosts that now favored asset class to an unsupportable level, the cashflows underlying the asset can no longer support it, the market goes into reverse, and the VAR models encourage an undershoot.
As an investor, as I understand it, as long as you haven't given access to an advisor / broker to manage your account (and I haven't) you own the underlying assets, the broker does not have access.
Pinnacle Value seeks long - term capital appreciation by investing in small - and micro-cap stocks that it believes trade at a discount to underlying earnings power or asset values.
Investing in commodities indices that are constructed using long or short positions in futures on physical commodities whose value is determined based on the price of the underlying physical commodity plus yield and that trade on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining commodities exposure and can provide a means for market participants to access the five components of the returns of the asset class.
Pair options are one trading session long, like the daily stock option, and the outcome is based on the daily relative performance of the two underlying assets.
Debt funds are further classified on the basis of the maturity period of the underlying assetslong - term and short - term.
Yes, consistency, focusing on the underlying business, sticking to the plan and to high quality assets is rewarding in the long run.
The party that agrees to buy the underlying asset holds a «long» position, or buys the contract; while the party that agrees to sell the assets holds the «short» position, or sells the contract.
I like the lower costs of the ETFs, but I have refrained from ETFs because I'm concerned that the share values may not always be aligned with the value of the underlying assets (because the ETFs can be traded like stocks all day long).
This type of investment is usually medium to long term (5 years or more), because of the potential for volatility of the underlying assets.
Then after a self - reinforcing cycle that boosts that now favored asset class to an unsupportable level, the cashflows underlying the asset can no longer support it, the market goes into reverse, and the VAR models encourage an undershoot.
We begin with the basic equation: long stock is equivalent to owning one call and shorting one put — when the expiration date, strike price, and underlying asset are identical.
The long call generally requires less initial investment than buying the underlying, and lets the option - holder avoid the asset downside during the option term.
If you buy a put, you are long an option and short the underlying asset.
Why do you say that a long call is a long position in the underlying asset?
A look at a simple, robust framework for estimating long - term asset - class forecasts, and its underlying assumptions, offers insights as to how asset managers can build a portfolio to meet investors» future financial needs.
Short - and long - term investments consist of auction rates securities, which have underlying instruments that consist primarily of corporate notes and asset backed securities, and are rated AA or higher at the time of purchase.
We like the fact that the asset list is long, including currencies, indices, stocks, and assets, which amount to over 500 underlying assets.
And I get confused by call / put options having short / long position in the options themselves or the underlying assets.
Generally warrants will only be suitable if you are very confident of the long - term value of the underlying asset.
The net current assets investment selection criterion calls for the purchase of stocks which are priced at 66 % or less of a company's underlying current assets (cash, receivables and inventory) net of all liabilities and claims senior to a company's common stock (current liabilities, long - term debt, preferred stock, unfunded pension liabilities).
Gold: similar to above, except tends to be more stable on the long run (underlying assets usually can't mess themselves up)
Rigorous bottom - up selection process targets managers with a core competency in driving operational improvement in underlying assets and a historical track record of delivering sustained investment returns over the long term
We own the underlying asset, but we're leasing it to customers for long periods of time - 10, 15, 20 years.
Authorized participants may wish to invest in the ETF shares for the long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.
Under normal market conditions, the Fund invests, directly or indirectly through exchange traded funds («ETFs») and mutual funds (together with ETFs, «Underlying Funds»), at least 80 % of its assets (plus the amount of borrowings, if any) in long and short positions in real estate related securities.
Under normal market conditions, the Fund invests, directly or indirectly through exchange traded funds («ETFs») and mutual funds (together with ETFs, «Underlying Funds»), at least 80 % of its assets (plus the amount of borrowings, if any) in long and short positions in equity securities.
When you buy a CFD over a share, index or commodity (known as «going long»), you hope that the value of that underlying asset will rise, so you can sell the CFD for a profit.
«Going long» means buying a CFD in the expectation that the underlying asset will increase in value.
On the contrary, you will generally suffer a loss, if the market price of the underlying asset falls whilst your CFD long position is open.
Both trading instruments tend to be traded online and have the flexibility of being traded at any time, as long as the underlying asset market is open.
Being Long in a CFD means you are buying the CFD's on the market by speculating that the market price of the underlying asset will rise between the time of the purchase and sale.
As owner of a long position, you will generally make a profit if the market price of the underlying asset rises whilst your CFD long position is open.
They were holding minimum reserves because a guy named Geithner at the New York Federal Reserve ruled that since the values of the underlying assets were increasing, they could consider the loans practically «riskless» as long as they carried default insurance.
We try to avoid being distracted by short - term cyclical changes in the market and understand the underlying asset, the specific short - term challenges and the long - term potential.
The right given by an options contract will lapse when the option reaches maturity, at which time the holder will no longer possess the right to buy or sell the underlying asset.
We're willing to bet that the number of participants that will enter based on the former altered situation is far smaller than the number that will enter based on the latter (i.e., the number of longs is going to dramatically outweigh the number of shorts) and, in turn, the net impact of a bitcoin futures market on the price of the underlying asset will be very much bullish.
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