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What is P & C

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Category: Beginners Guide

Investor's Business Each day and the Wall Road Journal still include a partial itemizing of option data for most of the more energetic option able stocks. The previous newspaper listings included principally just the fundamentals - a "P" or a "C" to indicate if the option a name or a put, the strike value, the final trade worth for the choice, and in some circumstances, volume and open curiosity figures. And whereas this was all well and good, many of in the present day's choice traders have a larger understanding of the variables that drive choice trades. Among these variables are a variety of "Greek" values derived from an possibility pricing mannequin, implied option volatility and the all-important bid/ask spread. (Study extra in Using the Greeks to Perceive Options.

Because of this, increasingly merchants are discovering possibility data by way of on-line sources. While each supply has its own format for presenting the information, the key variables usually include these listed in Determine 2. The option listing proven in Determine 2 is from Option tics Platinum software. The variables listed are the ones most looked at by in the present day's higher educated choice trader.

 OpSym: this subject designates the underlying stock image (IBM), the contract month and yr MAR10 means March of 2010), the strike worth (a hundred and ten, one hundred fifteen, a hundred and twenty, etc.) and whether or not it's a name or a put option 
U.S. Government Required Disclaimer - Commodity Futures Trading Commission

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or Tradewins.