| |
Major Site Upgrade in Progress |
 |
|
 |
|
Shahla
Money Managing Guru
Joined: 13 Nov 2004
Posts: 3324
Cash Points ££ 126163.28
|
|
|
 |
|
 |
|
 Posted: Wed Feb 28, 2007 1:18 pm Post subject: Call Options, Leaps and Warrants - Investor 101 |
 |
|
|
 |
|
 |
|
|
|
|
With the Precious Metals markets heating up once again, and investors, both individual and professionals, considering how to invest appropriately, we thought it would be timely to discuss objectively some of your choices to increase leverage.
We realize investors have different views, different time horizons and different levels of risk tolerance and this affects our opinions and choices of investment vehicles to use in the search of ways to increase leverage.
While we at Precious Metals Warrants are biased as to our personal choice, we will discuss and define objectively the difference in call options, leaps and warrants so that readers can have the knowledge to make their own decisions as to which is the best for their situations.
We personally would not have a problem using any of the three choices of investment vehicles defined below if they meet our current investment objectives and time horizon.
Call Options
A call option is a contract that gives its owner the right, but not the obligation, to buy a specified number of shares at a predetermined price within a set period of time. Most call options have a life of 30, 60, 90 or 180 days. Call options place you in the position of being a trader looking for short term gains with high risk associated therewith. Investors have to be correct on the direction of the markets, your individual stock choice as well as the timing of your entry and exit strategy. This is not so easy to do for the average investor. Also, there are very few call options on stocks of mining companies and we are in a world where investors demand more and more choices.
There has been an incredible amount of information, education and marketing to get the investors attention for options in recent years. For those professionals who can manage risk and have a short term horizon this can be profitable and exciting. However, the industry statistics are the most investors, 80%-90% will lose their investment dollars.
Leaps
A leap which stands for Long Term Equity Anticipation Securities is also an option as defined above but these have a longer life of perhaps up to 2 years. Leaps will give you much more time but unfortunately there are very few leaps on the mining stocks.
Options and leaps are actually created or written by investors who write an option and keep the premium (the amount you paid) as income. The underlying company receives nothing.
Warrants
http://www.marketoracle.co.uk/Article414.html |
|
|
|
|
|
|
 |
Online Finance Tools & Calculators |
 |
| Credit Score Calculator |
Easy to use online Credit Scoring tool - Calculate your credit score now online for FREE ! using the Moneyforums.co.uk credit scoring tool. Also TEN Tips on improving and mainting a good credit rating ! |
|
| Quick Health Calculator |
Easy to use quick health calculator to help you get started on the path to fitness. Calculates your body mass index (BMI). |
|
| "When will I die ?" Calculator |
Calculate when will you die based on your current life style and then more importantly what you can do about extending your lifespan ! |
|
| Mortgage Calculator |
Easy to use online Mortgage calculator tool - Calculate how long it will take to pay off your mortgage and what your monthly repayments will be as well as interest charged per month per each year. |
|
| Savings Calculator |
Use the flexible savings calculator to estimate the amount of interest you would earn given a level of monthly savings, with many optional settings. |
|
| UK Tax Calculator |
Check your tax and NI liability using this easy to use online tool. Outputs, Tax, Ni, Net pay and gross pay on an annual, monthly and weekly basis, also estimates your tax burden and the number of days a year you work for the tax man ! Plus lots of tax saving tips. |
|
|
 |
|
 |
|
Money
Forums Guides |
|
| Credit
Card Stoozing |
The
following guide explains the basics of credit
card stoozing in a step by step basis. |
|
| Discount
Vouchers |
Online
discount vouchers giving upto
50% off in stores such as Dixons,
Tesco, Avon, Currys, Boden and more. Many
of the vouchers are time limited - So check
back regularly |
|
| Money
Saving Guide |
Guide
to saving money on household bills & personal
finances - Start saving thousands of £'s
every year TODAY ! |
|
| Savings
Tree |
A
guide to Savings Accounts, from Cash ISA's to
Regular Savers to Premium Bonds, all explained
in an easy to understand manner. |
|
|
Users
Groups | Profile
| Messages
| FAQ | Sponsers
& Links | Member
list | Recommend this site | Top Money Saving Sitee
© 2004 - 2007 Moneyforums.co.uk / Market Oracle Ltd - Asserts copyright on all topics & posts made on this site. Moneyforums are open forums, and thus posts are NOT endorsed by Moneyforums.co.uk / Market Oracle Ltd . Any and all information provided within the Website is for general information purposes only and nor is or shall be deemed to constitute, financial or other advice. We recommend that independent professional advice is obtained before you purchase any product and/or service. All tools and guides are provided as is for general information purposes only.
|
|
|
