Saturday, October 20, 2007

Amazon.com: Mechanical Turk: Amazon Web Services

Amazon.com: Mechanical Turk: Amazon Web Services

Split up your work amongst many people. Amazon's service lets you post small jobs, and people on the internet can decide to do it.

Monday, October 15, 2007

Covered Call Income Calculator

Covered Call Options Calculator
Calculates profit from selling covered calls. Takes into account option strike price, option market price, expected price of stock, and cost per share. Calculates income in terms of yield generated from selling a covered call. Calculates profit both from selling at the strike price or another price.
Calculates what happens when the covered call expires with the stock price above or below the strike price. Covered calls can generate up to 7 percent monthly returns. Over the course of the year, they can gradually create good returns, sometimes beyond 20 percent annual returns.


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TradingSolutions: Financial analysis and investment software that combines technical analysis with neural network and genetic algorithms.

Monday, October 08, 2007

Covered Calls as a Hedge Against Losses

     Covered calls can be sold at a lower price than the current trading price of the stock; this will allow the buyer to not lose capital if the stock price drops. For example, Nokia (NOK) is trading at 36.29 today. A covered call at 35 can be sold for $1.75 per share for a 100 shares. This not only gives the owner a $50 premium, it also gives the trader protection if the price drops below 36.29. Basically, the owner is protected from loss from 36.29 down to 35. 
     Selling a covered call at a lower price offers protection in that security
up to the lower price.  The disadvantage occurs if the price of the stock goes up, since the owner loses any chance of gains beyond his entry point.