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Download the thinkorswim client

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Presentation on theme: "Download the thinkorswim client"— Presentation transcript:

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3 Download the thinkorswim client

4 Not everything is tradable

5 Stocks A stock or any other security representing an ownership interest. This may be in a private company (not publicly traded).

6 ETFs An ETF, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.

7 Options A put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. A call option is an agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within some time period Black-Scholes formula:

8 Greeks Delta- Change in underlying stock price effects the option price Gamma- Change in delta Theta- Rate of decline in the value of an option due to the passage of time (1 day) Vega- Change in volatility affects the option price Beta- Gains in a portfolio based on total market movements Alpha- Gains in a portfolio greater or lesser than market movements (based on ‘skill’)

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10 Catalan Referendum

11 Relatively Flat Market
S&P has shown a 54 basis point increase over the last month

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