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One of the best "price mover" opportunities in the stock market is (NDX) Nasdaq-100 Index: Indices:
Company Profile:The Nasdaq-100 Index is a capitalization-weighted index composed of 100 of the largest non-financial securities listed on the
Nasdaq Stock Market. The actual share price for the index is quite high – instead, take a look at the Stock Options for the index.
The price valuation for the options can be much more affordable, and you get the benefit of the same type of “price movement” as the underlying
share price.
"Price Tracking" and following what's going on in the market will help you determine the best time to buy into a position on NDX Options. Positive
comments in the news, overall positive sentiment in the stock market -- these are the events that can help boost the share price on NDX.
Index Options prices will trade higher as the share price moves up -- you want to be ready to take advantage of the price moves when these type of events
come up. Also -- downgrades, negative press comments, and negative news can cause the Index price to trade down....which will give investors an
opportunity to buy "PUT Options" to take advantage of the falling stock price.
You definitely want NDX on your "Stock Options Investment List", and part of your 2010 Financial Investment Plan!
** This Index is one of the Top Price Mover Indices in the stock market.
** Index shares have good price movement with consistent high volume activity.
** Index allows "Stock Options" available for individual investors.
If you need more Due Diligence information to see the companies listed in this Index, I would recommend going to
www.yahoo.com, look for the “Component” link
on the home page! Enter the company stock symbol (Ex. ^NDX) in Stock Symbol entry field. Some of the informational selections will be on the left side of
the screen (Summary, Components, Historical Prices, etc.).
The historical screen-captures below are great examples of how profitable buying the stock options can be. As you can see -- "Price Movement" in the
low-cost options is where the big gains come from. Look for these type of opportunities on NDX again every month when the
share price trades higher on any positive news! You can use these historical screen-captures to practice some "Stock Option Price Calculations" to
see the actual profit gains. The circled "<-Buy" value is the Premium Price Paid. The circled "<-Sell" value is
the Projected Premium Price.
Click Here --->
NDX JUN10 1825 CALL OPTION , to bring up the NDX CALL OPTION historical price screen-capture
that shows a nice gain.
Click Here --->
NDX JUN10 1850 CALL OPTION , to bring up the NDX CALL OPTION historical price screen-capture
that shows a nice gain.
Click Here --->
NDX JUN10 1875 CALL OPTION , to bring up the NDX CALL OPTION historical price screen-capture
that shows a nice gain.
Click Here --->
NDX JUN10 1900 CALL OPTION , to bring up the NDX CALL OPTION historical price screen-capture
that shows a nice gain.
Follow the simple steps below to get started with a practice calculation!
How To Do Stock Option Price Calculations!
Step 1.
Make sure you have installed a copy of my Stock Price Calculation Program! (See the previous page if you haven't done that yet!) If you have or
if you have the Full-Purchased Version installed, start with "Step 2"!
Step 2.
Click (or Double-Click) the desktop icon "My Stock Calculation Program" to start the program. Select the 2nd button "Options Calculation Program", follow the directions on
the screen, select the "Call Option Calculations" button!
Step 3.
Now, you need some stock option data to enter into the entry fields for the calculation screen. (You can print "Page 3" for a hardcopy of this section)
Enter the info below for the required data fields:
Call Option Description: NDX JUN10 1875 CALL 06/09/10
Call Option Symbol: NDX1875C
Premium Price Paid: 4.80
No. of Contracts: 2
Projected Premium Price: 36.50
Press ENTER or click on "Calculate".
Enter the correct fees:
Reg Fee: 0.02 (on the Buy To Open side)
Reg Fee: 0.01 (on the Sell To Close side)
Press ENTER again, or click on "Calculate".
Now, change the date that is in the "Sell To Close Projections" entry field to 06/17/10
Press ENTER again.
Click on the "Save" button to save the calculations to your hardrive.
What was the Total Call Option Cost? ________________ (This would be your initial investment cost)
What was the Projected Total Option Value? ___________ (This would be the overall value of the investment)
What was the Gain for Total Contracts? ______________ (This would be the actual profit made)
Click Here --->
NDX JUN10 1875 CALL Stock Option Calculation , to see the results from the calculation data above.
"OptionsXpress" is the default for pre-set commission rate.
That's how easy this Stock Price Calculation Program calculates your profits!!! Go back to the calculation screen and change the "No. of Contracts" to
"5", then press ENTER! If you can afford to buy more contracts, 5 - 10 contracts would give you much greater profits! Change the "No. Of
Contracts" to "10", then press ENTER again! This is why I think stock option investments are well worth the investment for a short-term opportunity!!
Simply change the "Number Of Contracts", "Premium Price Paid", and "Projected Premium Price" then press ENTER to see
different pricing calculations!
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