Category: Investing

Dec 20 2011

Risky Income with Iron Condors

Welcome to this article on trading options for income or as a business. The purpose of this article is to demonstrate the great risk taken on while trading an Iron Condor just before expiration.

Condors can be very rewarding, but at the same time, they can result in catastrophic losses to a trading account. One of the most dangerous ways to trade them is just before expiration.

Be Warned about the Iron Condor

If you have a few minutes, I would recommend watching the video that we have included with this article. You will see an iron Condor on the spy each demonstrates the type of iron Condor that can wipe out your trading capital. This is the strategy that is taught by 99% of the courses on the Internet. Don’t be misled, and don’t fall into the trap. Take a look at this video and see firsthand the stress and the risk involved with this option strategy.

As this option spread gets closer to expiration it becomes more volatile and more risky. Even though the trade might be yielding a profit, the option trader can lose all of the profit and more in one single day. This is because of the option Greeks. The Gamma is extremely high which causes the Delta position to change in an uncontrollable manner. Please watch the video at the six minute mark to understand better what I am talking about.

Well, let’s exit this article by saying a couple more things. First of all, the condor can definitely make an option trader some decent income, but on the other hand, one bad month can also wipe out a trading account. It’s not an option strategy to mess around with if you do not have the proper training. There are very few option traders who do this trade in a low-risk style. Most option traders take on hazardous risk each month by using this reckless strategy.

Nov 29 2011

Why does the Spot Price for Precious Metal Silver Rise?

Many factors like the silver released into the market by many countries and the demand for the silver, influence the current price of silver. Nowadays US is buying silver from the world market paying the current price of silver per ounce. But our country had the largest stack of silver in the world once. All the silver was released in the world market little by little in course of time to control the silver price from rising. All the major economies of the world release metals like gold and silver from their deposits to keep their price in control.

The price of silver stayed steady for a long time. Silver was priced at $1 at the beginning of 1900′s. By late 1970′s some investors like the Hunt brothers cornered the silver market by stacking huge amount of silver. Their tactics increased the price of silver to $16 per ounce. It is said they owned nearly 100 million ounces of silver at that time, which they released only after the silver price skyrocketed. The price stayed somewhat stable for the next three decades. But by 2001, information technology boom, paved way for the rise for silver price by another $12 dollars in 9 years. Current price of silver per ounce is $28.68.

Electronic industry started to use silver to a great amount. Silver was used in many new devices starting from keyboards to mobile phones. As the increase in usage of these modern equipments increased drastically, the demand for silver also grew dramatically. Current price of silver per ounce varies or to be specific raises steady always.

The sharp decrease in production and steady increase in demand paved way to very high silver prices in this decade. Silver is no longer seen as a precious metal used for jewelry or for trading. It has become an essential industrial metal like steel. Hence the current price of silver will continue to rise dramatically in the future too.

New silver investors can see the history of silver price to get a better understanding about the market. COMEX Spot Price website and Kitco, Inc. websites give the necessary details regarding the weekly and monthly price fluctuations in the silver market. The London market fixes the current price of silver per ounce till date every day.

Nov 14 2011

A Succinct Intro To Italian Gold Charms

Charms are actually tiny ornamental pieces which instead of being utilized alone, are utilized like a part or accessory of other larger pieces of jewelry. Usually, worn in chains as pendants or hanging pieces in bracelets, they’ve found new ways to be in fashion.

It is now typical to find people using charms as forms of jewelry to decorate dresses, collars of shirts, mobile phone antennas, napkin holders, quilts and wine glasses. The charms have different shapes, styles, characteristics and at times, they are symbols or signs of something.

The history of charms can be dated back to ancient times. In olden days, people had a superstition concerning the “evil eye”. It meant that if an individual was jealous of your qualities or possessions, his jealousy could curse you and you could be deprived of the belongings. Charms had been worn to guard one’s self from all evil wishers. Charms were thought to have unique protective powers.

The use of charms continues even though People may have stooped regarding them as containing unusual powers. People still consider them as items that can bring them good luck although not to the extent that people believed in during the olden days. However, charms are now really prominent in fashion plus they display the style and likings of the person wearing them.

Gold is precious and people have usually sought to have it. People utilized gold to display how rich they were and women in particular had a fascination with gold simply because they used it in making themselves look much more attractive.

Pure gold is really soft and cannot last long. This makes it necessary to mix the gold chemically with other metals to form an alloy. The unit used to measure the amount of gold in the alloy is the carat. The percentage of the base metal and gold in the alloy influences the color of the product made using the alloy. If one changes the base metal, the color of the gold alloy will also change.

The preferred yellow colour of gold occurs after using copper as the base metal in combination with zinc and nickel. In order to achieve this characteristic yellow colour, the amount of copper within the alloy needs be greater than that of the other metals. Combining gold with other metals in this way makes it more long lasting and it can resist daily wear and tear successfully.

The gold produced in Europe is generally eighteen carats but the use of higher carat contents is also common. The carat content of charms on the other hand is mainly fourteen simply because this carat content makes them stronger and more economical.

The unique charms that Italy offers contain fourteen carats of yellow gold and they are of numerous styles such as modern, antique and interesting symbols and signs. The appealing charms also offer benefits such as chip resistance and long lasting luster. The other qualities of these charms are simple cleaning, durability and reasonable prices. It is possible to get charms at a cost of 10 dollars and above. The decision to buy the charms is yours.