FINANCIAL MARKETS

Understanding Stock Option Information



Understanding Stock Option Information

Introduction

This project encouraged me to keep track of what's going on in the world today. I never read much, but then I realized that the key to succeed is to be always reading and being actualized. We have to be aware of every detail that is happening around the world because anything can turn the market around. At the beginning I had no idea how to trade, and I didn't know what to invest in. Then after reading the Wall Street articles on the stock options information of various companies.

The entire idea was to create a well-diversified portfolio, where I spread out my investments in order to reduce risk. By spreading out my portfolio I was able to invest in different investment vehicles, such as stocks and mutual funds. My idea was to reduce risk as much as I could so I choose securities from different industries and location.

Discussion

On May 7th I read an article from Barron's saying that “Apple This Month To Launch iPad Sales In 9 More Countries.” The device was only sold in the U.S. and the new market for the iPad included really knows much about trading I decided to buy only100 shares of Apple (AAPL) at $235.86.(Wall Street,2013)

Few days after I started to read more and I felt more comfortable. Therefore, on May 10th I decided to buy a bunch of securities. I started to investigate about Boeing and I read an article from Barron's where it said “Boeing to Regain Altitude.” This article talked about how much Boeing's share was going to go up, so I bought 200 shares of (BA) at $71.08. Hours later I saw that the price dropped $.10, so I bought 250 more shares at $70.98.(Wall Street,2013)

Also on May 10th I bought 300 shares of Google (GOOG) at $519.63. After reading several articles, I found one in Wall Street Journal that stated “Android US Market Share Rises To 28%, Surpassing I Phone's: NPD.“ that it was backing away from making Google's Nexus One device available on its network. This caused a small drop in the Google's share, so I decided to sell 50 shares at $518.68.While reading more articles, on May 12th I decided to buy 100 shares of Boeing (BA) at $ 72.28. An article from the Wall Street Journal posted on May 11th stated that “BA's Striking Good Value” where BA shares have fallen 13% in the past two months and now trade on 3.9 times forecast 2011 Ebitda, a 30% discount to the sector. That presents a buying opportunity. Also on May 12th I bought more shares from two different companies in order to have a more diversified portfolio. (Scaggs,Pp.4,2013)

First, I bought shares from Macy's Inc. There was an article posted the same day on the Wall Street Journal that said “Macy's Reports Profit, Holds Forecast” where the company returned profitable in the first quarter on stepped-out sales. They also took reasonable decisions when did not raise their forecast despite ...