Sentences with phrase «underlying stock increasing»

Investors like to own stock because of the upside potential in the underlying stock increasing in price.

Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches.

Not exact matches

Whereas in most markets an increase in short - selling puts pressure on the lending market and pushes up the interest rate at which short - sellers can borrow the underlying stock, the ready supply of gold loans from central banks seeking to earn some return on their gold holdings has, until recently, helped to keep lease rates low, generally in the range of 1 — 2 per cent (Graph B3).

This may happen if the underlying Stock becomes hard to borrow due to corporate events such as take overs, dividends, rights offerings (and other merger and acquisition activities) or increased hedge fund selling of the Stock.

«Investors often interpret a stock price rise as confirmation of the underlying company's attractiveness, whereas it really means that the market is reducing your odds of making money and increasing the odds of you losing your money» Francois Sicart

Using the above example: Let's say the price of the underlying stock continues to increase and reaches a bid price of $ 26.00

(In order to be included in the ETF's underlying index, a stock must have a minimum of ten consecutive years of dividend increases.

If a stock is at all time highs and has no overhead resistance and the trend of the underlying sector is up this increases your odds for potentially strong and explosive moves.

To purchase a call option with a strike price of $ 35 means placing a bet that the underlying stock price will increase to at least $ 35 per share before a certain date.

These updates are mainly designed to show the increase or decrease in the value of the underlying equities I'm invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time.

When aiming for an every increasing annual forward dividend, you will not fall into the trap of picking stocks by the months they get paid out but rather select them by the underlying business.

Selling calls is a riskier situation because you do stand to lose money if the price of the underlying stock's shares increases.

With that said I will venture that yield of XOM will continue to rise for at least another year as the stock price slowly deteriorates to match the companies underlying fundamentals of increased debt and reduction in FCF.

This strategy is utilized to increase the return on the underlying stock and to provide a limited amount of downside protection.

While decades of consecutive dividend increases are great, they only matter if the underlying stocks have actually outperformed the benchmark on a total return basis.

Any increase in option value due to an increase in the price of the underlying stock will be tempered by this lower «gamma» effect.

Third, in the case of either actively managed funds or index funds, it can be evidence that increases in common stock prices have outpaced increases in underlying corporate values.

In a long put trade, a put option is purchased on the open exchange with the hope that the underlying stock falls in price, thereby increasing the value of the options, which are «held long» in the portfolio.

So for example, if a Call option had a Delta of.33 this would indicate that the option price would increase or decrease by approximately.33 for each $ 1 increase or decrease in the underlying stock.

It's truly a win - win, because the underlying assets (the dividend growth stocks themselves) are typically increasing in value as the businesses they represent equity in are becoming worth more.

Zweig does a good job of summarizing this: «If you buy a stock purely because its price has been going up - instead of asking whether the underlying company's value is increasing - then sooner or later you will be extremely sorry.

Another way to word this is that the premium on in the money options shrinks as expiration approaches and the intrinsic value of the option increases as percentage of total value so that movements in the underlying stock price become a greater influence on the option price - hence a greater delta.

A gold mutual fund, like a gold stock, is considered a leveraged play on gold because the underlying mining companies have fixed costs and any increase in the price of gold can increase the percentage of profit quite dramatically.

For an inverse ETF, stock returns would be positively correlated with volatility shocks — for example, large price declines in the underlying lead to large price increases in the inverse ETF.

As an example, a 2 % index increase means that each underlying company saw an average of 2 % stock price increase.

Appreciation is the increase in a property's price that results from inflation and possibly a rise in the underlying value of the property (what stock investors call «alpha»).