Feb 27th 2009Finance
A strategy of buying stock and forward selling is called covered writing or a “Buy and Write†strategy.  A call is a contract that entitles the buyer to purchase from the seller a fixed number of shares at a fixed price up until the expiry date.  A covered call writer therefore only sells a number of calls equal to the number of shares already owned. The underlying share price of a stock would have to rise substantially to outperform the covered writer.  Read More »
Feb 17th 2009Finance
I recently wrote about explaining Contracts For Difference.
The current trading environment is certainly an interesting place and it is times like these where traders with a trading plan, utilising solid techniques and logical strategies survive when others don’t. When individual stocks become overly volatile and liquidity becomes an issue, it is often useful to look at trading the whole market or particular sectors within the market. To trade the whole Australian share market, you can gain exposure to the S&P/ASX 200 Index. This index measures the performance of the 200 largest index-eligible stocks listed on the ASX. Read More »
Feb 13th 2009Finance
In an announcement to the Australian Stock Exchange this morning, accompanied by the half year financial reports to 31 December 2008 Sean Rothsey, Chairman of MDS Financial Group Limited stated:
“The Company’s on line trading joint venture with BoxRED Pty Ltd - Trader Dealer Online Pty Ltd was formed as a subsidiary of the Company for the purchase of certain intellectual property assets from Trader Dealer Pty Limited (Administrator Appointed), a subsidiary of the collapsed Opes Prime Group. Read More »
Feb 13th 2009Finance
In an announcement to the Australian Stock Exchange this morning , accompanied by the half year financial reports to 31 December 2008 Sean Rothsey Chairman of MDS Financial Group Limited stated “I wish to highlight to the market the current deterioration in global markets which has had a particularly severe impact on the financial services sector and the adverse market trends and sentiment that have additionally made for a significantly tough trading environment for the Company. The results for the Company should be regarded within the context of the difficult times for a company in this sector. These results are pleasing in that context and I commend the efforts of management and staff, who have ensured that the Company is so well placed at this time post consolidation for both preservation and growth.†Read More »
Feb 12th 2009Finance
Volatility has been white hot in the past few months. The volatility index (VIX) is referred to as the fear gauge and has been at historic highs in recent months. The market movements of late have been spectacular, as you can see from the attached chart. The VIX spikes have coincided with significant down moves in the S&P500 and consequently on other world markets. Read More »