
You divide the return by the amount you invested. To figure the return rate on the investment, get your calculator out because it will take some division. But if the stock stays above $27.50, on expiration day the stock will be gone and you will receive 27.50 a share so you made $2 on the investment (27.50 - 25.50) Even if the stock drops 13% you will not lose money. In the example above, a November 27.50 Call option is sold at the same time the XYZ stock is bought, so you receive $3.60. (Hedge in this case means downside protection) She would never drive around in her spotlessly perfect 1985 sky blue Buick without auto insurance and there's no way she would ever invest in a stock without a hedge. There's no way I would get my mom into a stock with out a hedge. This is the trade you can do to lower the initial cost of the XYZ stock, increase your return if the stock goes up, and reduce the effects from a drop in the stock's price. The third line has the information you won't see on CNBC.XYZ's current price is $29.10 and it is up 8 cents for the day. The second line is the Last Price and the change for the day.The first line is the company name and stock symbol.This is what they look like for a fictitious stock: What do the PriceWatch alert numbers mean?.įirst let's break down a sample PriceWatch Alert.

You might see a lower return if the stock pays dividends.
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Our intent with PriceWatch alerts is to show you examples and call your attention to a particular trade that might be worth further investigation. DANGER! DANGER! DANGER! There is no way you should ever read a PriceWatch Alert and run right out to do the trade. PriceWatch Email Stock Alerts are most certainly not recommendations. Why mess with low return, high risk, worst of the bad, unsafe investments when there might be a better way? Our patented technology hunts for the highest return, lowest risk, best of the best, safest investments out there. You may be watching soap operas and we may be hanging out by the pool, but SmartSearchXL doesn't take a break. Our SmartSearchXL spends the whole day watching the markets. Our Subscribers get the stock price alerts up to an hour before they go out over the news wire. They are distributed through a major news services so you might find them on any of over four thousand news, brokerage, and finance web sites. What does my mother have to do with this?Įvery trading day we send out several PriceWatch Alerts. What are PriceWatch Email Stock Alerts all about? What do they mean? How can you use them? And. If you're a PowerOptions subscriber, you get them almost every day.

So what are these PriceWatch Alerts about anyway?
