New answers tagged stock-analysis
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The owner of your short call has the right to buy this stock at $84. If the stock has dropped to $75, it would make no sense for him to do so since he can buy it for $9 less on the open market. The call will expire worthless and you will continue to own the stock but at a loss of $3.50 due to the $5 drop from $80 to $75 less the $1.50 premium received.
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In a traditional stock split, the number of shares increases by the split ratio and share price decreases by the inverse of that ratio.
For example, you own 100 shares of XYZ at $100 and a 2:1 split occurs. The post split position will be 200 shares at $50. The value of the position is unchanged since 100 x $100 = 200 x $50.
To reverse engineer the data,...
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As I mentioned in my comments above, a call warrant is a long term option (the right to buy the stock at the strike price but with a further expiration). In common usage, warrants are assumed to be call warrants unless specified as put warrants (the right to sell the stock at the strike price).
PTE's secondary offering consists of a unit which is ...
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The warrants that are received along with secondary-stock-offerings are like free call-options. An investor that exercises a warrant has to pay a strike price but benefits from a gain in the stock price and that if the stock did gain beyond the strike price.
The secondary-stock-offerings can sell at a higher price than the current stock price because they ...
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The CFTC, in its Commitment-of-Traders report, classifies traders as being commercial or non-commercial. A commercial trader is a hedger while a non-commercial trader is a speculator.
https://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm
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Open interest information tells us how many contracts are open and live in the market. Volume on the other hand tells us how many trades were executed on the given day. For every 1 buy and 1 sell, volume adds up to 1. The volume counter starts from zero at the start of the day and increments as and when new trades occur. Hence the volume data always ...
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Open Interest (not Option Interest) represents the number of contracts that exist on any given day.
In order for a trade to occur, there must be a buyer and a seller. Each party may be opening or closing the contract. There are 4 scenarios:
Buy to Open (BTO) and Sell To Open (STO)
Both parties are initiating a new position (one new buyer and one new ...
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A long wick means that the high/low range for the time period was large.
The middle one which is very long could have been caused by:
A fat fingered trade made at the low of the range
Normal trading throughout the range
Bad data from the provider
What actually occurred could be determined by looking at Time & Sales.
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A bought-deal just means that the underwriter purchased the bonds (note that it purchased convertible bonds, not stock) and will sell them on the open market rather than the company selling them directly and the underwriter just just acting as an agent
Is the situation good news or bad news?
It's not that black and white. On one hand, the bonds were sold ...
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A company's book value is the worth of all their assets.
A companies book value is the value that accountants place on their assets, minus the accountants estimates of their liabilities.
The thing is most assets don't have a single well-defined value. The cost of acquiring an asset can be much greater than the money that could be recovered by liquidating ...
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