-Options are contracts
-You pay a premium for them
-You are able to buy or sell stock
-1 option = 100 shares
-They expire the third Friday of the month you purchase them for
-Strike price = expiration price
-You pay a premium
-The option gets traded and sold versus the stock
-Most people just trade the contracts
-Think of options like buying a house
-You find a house that you like in an area where the houses are selling for $150k. You knock on the door and ask to buy the house. You are willing to give $10k up front if the house is sold to you within 6 months for $200k.
-It is a win-win situation.
-The homeowner gets the $10k and you get the option to purchase the house in the future and you can do research to check if the area is actually developing.
-You have the right, but not the obligation to purchase the house. You pay $10k in order to have the option to buy it.
-If someone gave the homeowner a higher bid, the homeowner would not be able to sell the house because you have the legal right to buy it in the future for $200k.
-The homeowner would have to buy out the contract with you before selling the house for $300k.
Types of Options:
1. Call - You are expecting the stock to go up
2. Put - You are expecting the stock to go down
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this is very informative, as I am learning this stuff now. I have to admit though, I have a hard time focusing when the title on your board doesn't spell the word Basics correctly. Thank you for the information though.
Quick question. Why would someone buy a PUT option from me if the stock price is going down? Do they feel that the stock price will eventually go back up? If that's the case, would they be buying it as a CALL option? I'm learning, sorry
If the hypothetical "house" was going at $300,000. And my Call was at $200,000. Could wouldn't it be a smart
investment to buy it at $200,000 and then turn around and sell it at $300,000 for a $100,000 profit?
Let`s say i bought 100 shares of Stock 'A' for $100 on the 1st of January. I also bought 1 contract of the Call option for the same Stock 'A' at $100. So, how different is it for the option when the value of the stock reaches $200? Don't I still make the same money i'd have made from buying the stock? Besides, doesn't options trading require more margin than stock trading? Do options offer higher leverage than stocks, as only the premium is at risk?
Hi Sasha! Thank you again, so informative! What is the difference between shorting and buying a put (or should i say "selling" a put while "buying" a call?)? One question as well an option has an expiry date, you say on the third friday of the month, is that always the case regardless of when i make the order? If i make a call at 100 when it trades at 50 and 1 week before the expiry date it is at 110 what is my profit for 100 shares? => 1000$. Finally, when shorting a stock lets say at 50 and I see it is now at 20 can there ever be a problem for me to get out of my trade at that moment when I want to cash in? Thanks a million!
Owned buildings at another site may be used as alternate workspace if a building cannot be occupied. This depends upon the location of the building and whether the building would be affected by the same hazard that prevented use of the primary building. The alternate facility may be a viable business recovery strategy if the building can be configured with the required equipment or existing equipment can be configured to need business requirements.
Systems and Equipment.
Evaluate these systems to determine whether they meet the needs of the program. Identify and plan to overcome emergency communication system limitations such as weak radio or cellular service or areas where a warning system cannot be heard. Upgrading this critically important system may be required. Verify that these systems are in reliable working condition.
If fuel, battery backup power or batteries are required, make sure the system can run for the required time and chargers are available. Document how to operate these systems and mark the locations of controls. Make sure the information is available during an emergency. Many of these systems also require periodic inspection, testing and maintenance in accordance with national codes and standards. Train staff so a knowledgeable person is able to operate systems and equipment.
Materials and Supplies.
Be sure to compile a list of available resources using the Emergency Response Resource Requirements and Business Continuity Resource Requirements worksheets as a guide.
Preparing for an emergency, responding to an emergency, executing business recovery strategies and other activities require resources that come from outside the business. If there were a fire in the building, you would call the fire department. Contractors and vendors may be needed to prepare a facility for a forecast storm or to help repair and restore a building, systems or equipment following an incident.
The following external resources should be identified within plan documents. Include contact information to reach them during an emergency and any additional instructions within the preparedness plan.
Public Emergency Services.
Contractors and Vendors.