A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying… Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call). Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call). Bullish investors would use calls because the value of the call should increase if the price of the underlying stock goes up. The potential profits for an investor owning a call are unlimited, because the underlying stock can go up to any price. The maximum possible risk on a call is limited to the total price paid for the option contract. Changes in the price of the underlying stock will lead to a change in the value of the call, as will changes in the volatility of the underlying stock. If… Read More

After falling more than 38% from its high, many investors are now wondering whether Apple (NASDAQ: AAPL) is a buy below $500. From a trading perspective, the answer is “no,” and the only reason to think about buying Apple after such a big drop is based on fundamentals. #-ad_banner-#Fundamental… Read More

The only constant in life is change. This fact is doubly true when it comes to the fickle world of fashion and retail. Fads will come and go as stores open and close. Consumers are always looking for the next hot item.  It’s a… Read More

The only constant in life is change. This fact is doubly true when it comes to the fickle world of fashion and retail. Fads will come and go as stores open and close. Consumers are always looking for the next hot item.  It’s a constant struggle for fashion retailers to stay one step ahead of the curve and know what customers want before they even know. Many retailers are constantly looking for the next fad — which are good for business as they’re fast sellers — just to keep customers happy (think mood rings… Read More

The only constant in life is change. This fact is doubly true when it comes to the fickle world of fashion and retail. Fads will come and go as stores open and close. Consumers are always looking for the next hot item.  It’s a constant struggle for fashion retailers to stay one step ahead of the curve and know what customers want before they even know. Many retailers are constantly looking for the next fad — which are good for business as they’re fast sellers — just to keep customers happy (think mood rings or the Silly Bandz).#-ad_banner-# So it’s no wonder that in this Internet era where consumers are much more retail-savvy, traditional retailers are struggling for survival.  And this well-known retailer, which has been operating for more than 100 years, is a great example. I’m talking about JC Penney (NYSE: JCP). This once-leading retailer has been struggling to get out hole for a long time. In the third quarter of 2012, despite many business-transformation measures implemented throughout the year, the company still posted a loss of $123 million, after booking a $186 million profit in… Read More

One of the best investments in the 21st century has been professional sports teams. In 2000, there were 114 major sports teams in the United States and none of them have declined in value during the past 12 years. Only two teams, the National… Read More

One of the best investments in the 21st century has been professional sports teams. In 2000, there were 114 major sports teams in the United States and none of them have declined in value during the past 12 years. Only two teams, the National Hockey League’s Colorado Avalanche and New York Islanders, failed to gain at least 10% during that time. The biggest winner, Major League Baseball’s Minnesota Twins, increased more than 15.4% a year on average. While these teams might be among the best possible investments, few sports fans or investors can afford… Read More

One of the best investments in the 21st century has been professional sports teams. In 2000, there were 114 major sports teams in the United States and none of them have declined in value during the past 12 years. Only two teams, the National Hockey League’s Colorado Avalanche and New York Islanders, failed to gain at least 10% during that time. The biggest winner, Major League Baseball’s Minnesota Twins, increased more than 15.4% a year on average. While these teams might be among the best possible investments, few sports fans or investors can afford to buy their own team.#-ad_banner-# According to Forbes, the Manchester United European football (the sport Americans know as soccer) team is the most valuable sports team in the world. In July, the latest available data showed that the team was valued at $2.23 billion, according to Forbes, which is the leading source of publicly available information on the value of sports teams. After that valuation was published, Manchester United (NYSE: MANU) completed an IPO on the New York Stock Exchange. Now, stock and… Read More

Shorting a stock is considered one of the sexiest and most complex moves on the Street.#-ad_banner-# Investors are dazzled by stories of hedge fund titans such as David Einhorn and John Paulson raking in billions, going against… Read More

Shorting a stock is considered one of the sexiest and most complex moves on the Street.#-ad_banner-# Investors are dazzled by stories of hedge fund titans such as David Einhorn and John Paulson raking in billions, going against the grain and taking aim at companies they believe are overvalued or headed for a nose dive. But in spite of the psychological attraction of being a contrarian and bucking the masses, even the smartest… Read More

Shorting a stock is considered one of the sexiest and most complex moves on the Street.#-ad_banner-# Investors are dazzled by stories of hedge fund titans such as David Einhorn and John Paulson raking in billions, going against the grain and taking aim at companies they believe are overvalued or headed for a nose dive. But in spite of the psychological attraction of being a contrarian and bucking the masses, even the smartest money on the Street struggles with short investments. Take Herbalife (NYSE: HLF) for example. Short interest in the stock exploded higher from 20 million shares in mid-December to an eye-popping 37 million shares in the last week of 2012. This came after it was revealed that a number of billion-dollar hedge funds, led by Bill Ackman, had initiated a massive short position in the multi-level marketing company.  As you can see in the chart below, the surge in short interest coincided with the… Read More

It’s usually good news when a company delivers quarterly results that beat analysts’ expectations, especially when they beat on earnings and revenue. That’s exactly what Wells Fargo (NYSE: WFC) did on Friday, Jan. 11, but the… Read More