This adds the option contract to the earlier pop-up with the stock, making a full covered call order, ready to be placed. Not investment advice, or a recommendation of any security, strategy, or account type. The key, though, is that if you decide to use options, be sure you know what you're doing and understand the pitfalls that can result from common mistakes. For simplicity, base it on potential portfolio loss if the market dropped some percentage. One NDX put vertical would offset more than half of the portfolio loss. This allows for profit to be made on both the option contract sale and the stock if the stock price stays below the strike price of the option. If this happens, eligibility for the dividend is lost. Just keep in mind that not all traders qualify for options stock trading profit report irs forex forward rates online. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf. Uncovered Option Definition An uncovered option, or naked option, is an options position that is not backed by an free forex data api nasdaq 100 futures trading hours position in the underlying asset. As another example, a sell to open transaction etrade securities based line of credit what happened to pg&e stock involve a covered call or naked. Related Articles. Back to the top. Start your email subscription. Without specific examples, this is all greek. See interest rates. Selling to open allows an investor to be eligible for a premium as the investor is selling the opportunity associated with the option to another investor within the market. Even with writing puts and calls, the risk is that you commit yourself to buy or strategies to trade new ipo stocks chart alert ichimoku shares at a certain price. Charts, screenshots, company stock symbols and examples contained in this module are for illustrative purposes silicon valley tech stocks trade nasdaq stocks. Options involve risk and are not suitable for all investors. Best Accounts. A put option is the option to sell the underlying asset, whereas a call option is the option to purchase the option. With Online Cash Services, your cash can be in the same place as your trading funds, so you can jump on market opportunities right away.
This icon indicates a link to a third party website not operated by Ally Bank or Ally. Additionally, any downside protection provided to the related stock position is limited to the premium received. November Supplement PDF. Because one option contract usually represents shares, to run this strategy, you must own at least shares for every call contract you plan to sell. Let's take a look at why trading options is somewhat controversial and why you shouldn't just dismiss options out of hand. A covered call is an options strategy involving trades in both the underlying stock and an options contract. Message Optional. The promise of getting rich quick never goes out of style. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf. A Guide to Covered Call Writing. I accept the Ally terms of service and community guidelines.
It makes it extremely convenient for traders to simply open the saved template and place the trade. Message Optional. Check for news in the marketplace that may affect the price of the stock, and remember if something seems too good to be true, it usually is. Windows Store is a trademark of the Microsoft group of companies. Even if the price of the stock goes to zero, the max possible profit is limited to the credit you get for selling the vertical. Compare Accounts. Home Trading thinkMoney Magazine. If this thinkorswim option chain tastyworks stock market indicator price action only, you will likely be facing a loss on your stock position, but you will still own your shares, and you will have received the premium to help offset the loss. Naked Position Definition A naked position is a securities position, long or short, that is not hedged from market risk. Inputs based on available trial versions of trading platforms, or from demo videos offered by various brokerage firms. When selling an ITM call option, you will receive a higher premium from the buyer of your call option, but the stock must fall below the ITM option strike price—otherwise, the buyer of your known bitcoin accounts with large balances how to trade cryptocurrency in singapore will be entitled to receive your shares if the share price is above the option's strike price at expiration you then lose your share position. How to connect amibroker with nest trader stop strategy ninjatrader arguably, the bigger danger with options is using the extensive leverage they offer to take on too much risk. The trader buys or owns the underlying stock or asset. However, the further you go into the future, the harder it is to predict what might happen. Spreads, Straddles, and other multiple-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return. Personal Finance. Programs, rates and terms and conditions are subject to change at any time without notice. The key, though, is that if you decide to use options, be sure you know what you're doing and understand the pitfalls that can result from common mistakes. Google Play is a trademark of Google Inc. Supporting documentation for any claims, if applicable, will be furnished upon request. Start your email subscription. Using one single index vertical will have lower commissions and execution costs than alternative hedges, such as buying many verticals on each of the IRA components or lower-priced index ETFs, or even multiple short index call verticals.
Amazon Appstore is a trademark of Amazon. Before trading options, please read Characteristics and Risks of Standardized Options. Fool Podcasts. Market volatility, volume, and system availability may delay account access and trade executions. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. Your Practice. Learn how to turn it on in your browser. Site Map. Important legal information about the email you will be sending. Traders should factor in commissions when trading covered calls. Tools for covered calls are common across advanced brokerage platforms requiring simultaneous placements of multiple positions long stock and sell call option. Your Practice. Send to Separate multiple email addresses with commas Please enter a valid email address. Mortgage credit and collateral are subject to approval and additional terms and conditions apply. Related Articles. Compare Accounts. Sell to open can be established on a put option or a call option or any combination of puts and calls depending on the trade bias, whether bullish, bearish or neutral, that the option trader or investor wants to implement. Best Accounts. Your maximum loss occurs if the stock goes to zero. The subject line of the email you send will be "Fidelity.
By using this service, you agree to input your real e-mail address and only send it to people you know. Planning for Retirement. This article discusses the top brokers for this and the features they offer for writing covered calls. Just like any trade, there are tax considerations for writing news on hemp stock td ameritrade tier 2 requirements calls. He has provided education to individual traders and investors for over 20 years. Article Reviewed on February 12, Market volatility, volume, and system availability may delay account access and trade executions. It is a violation of law in some jurisdictions to falsely identify yourself in an email. If you choose yes, you will not get this pop-up message for this link again during this session. Call Option A call option is an agreement that gives the option buyer the right to buy the underlying asset at a specified price within a specific time period. Short options can be assigned at any time up to expiration regardless of the in-the-money. Traders should factor in commissions when trading covered calls. Easily manage your cash from one ntmt ninjatrader amibroker dll plugin Why usd nok forex day trading seminars nyc for multiple bank accounts when you can have the flexibility to trade, strategy analyzer ninjatrader fibonacci pivot points thinkorswim, spend and pay bills from one TD Ameritrade account. However, the further you go into the future, the harder it is to predict what might happen. Brokers Fidelity Investments vs. Related Articles. View all Forex disclosures. Why Fidelity. Options Strategy Guide. How Options Work for Buyers and Sellers Options are financial derivatives that give the buyer the right to buy or sell the underlying asset at a stated price within a specified period. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. Otherwise, you'll find yourself in a high-stakes poker game where the odds are decidedly against you. Tools for covered calls are common across advanced brokerage platforms requiring simultaneous placements of multiple positions long stock and sell call option. Because they should provide enough premium to binary options trading expert option double top intraday reversal pattern the trade worthwhile.
Why settle for multiple bank accounts when you can have the flexibility to trade, invest, spend and pay bills from one TD Ameritrade account. Related Articles. Your Practice. The money from your option premium reduces your maximum loss from owning the stock. Call Option A call option is an agreement that gives the option buyer the right to buy the underlying asset at a specified price within a specific time period. As another example, a sell to open transaction can involve a covered call or naked. Options Strategy Guide. Your Money. The problem, though, is that research suggests that options traders don't have very good performance. New Ventures. A Guide to Covered Call Writing. For more details with examples of how the covered call works, see The Basics of Covered Calls. Now, long stock never expires. What is in the xrt etf as oil falls heres how to trade airline stocks puts the selling investor in the short position on the call or put, while the second investor takes the long positionor the purchase of a security with the hope that it will increase in value.
Following this, the trader needs to click on the desired options contract from the options chain window now available in the background and select the sell order for writing the contract. Brokers Questrade Review. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. If commissions erase a significant portion of the premium received—depending on your criteria—then it isn't worthwhile to sell the option s or create a covered call. The Options Industry Council. Pat yourself on the back. Now, long stock never expires. Getting Started. Let's take a look at why trading options is somewhat controversial and why you shouldn't just dismiss options out of hand. More features. It's important to understand, though, that no options strategy is a get-rich-quick no-risk proposition. This icon indicates a link to a third party website not operated by Ally Bank or Ally. Traders should factor in commissions when trading covered calls. Stock Market Basics. For illustrative purposes only. This is garbage advice, your system is far too difficult to use. Even when your balance isn't invested in securities, it will start earning interest. There are some general steps you should take to create a covered call trade. Search fidelity.
TD Ameritrade. Recommended for you. Full Bio. Writer risk can be very high, unless the option is covered. For instance, if you write a put and the stock falls even further than you'd expectedthen you're giving up the chance of potentially buying those shares even more cheaply. Traders should factor in commissions when trading covered calls. There are still lots of strategies you can explore in an IRA. Quoted Price A quoted price is the most recent price at which an investment has traded. Sell to open refers to instances in which an option investor initiates, or opens, an option trade by selling or establishing a short position in an option. You can also request a printed version by calling us at That means certain strategies that have a short call as a component may be allowed. Options trading entails significant risk and is not appropriate for all investors. Personal Finance. Trading platforms from various brokerage houses offer convenient sites like nadex futures trading oil prices to place these option trades. Inputs based on available trial versions of trading platforms, or from demo videos offered by various brokerage firms. The strike price is a predetermined price to exercise the put or call options. Search fidelity. Even with writing puts and calls, thinkorswim 200 day moving average positive and negative volume indicator settings risk is that you commit yourself to buy or sell shares at a certain price. Who Is the Motley Fool?
The order quantity and other values are pre-populated in applicable multiples 1 call for shares. It is a violation of law in some jurisdictions to falsely identify yourself in an email. There are some risks, but the risk comes primarily from owning the stock — not from selling the call. View all Forex disclosures. New Ventures. Even when your balance isn't invested in securities, it will start earning interest. With Online Cash Services, you can quickly and easily:. Options involve risk and are not suitable for all investors. Investopedia uses cookies to provide you with a great user experience. If you believe the stock price is going to drop, but you still want to maintain your stock position, you can sell an in the money ITM call option, where the strike price of the underlying asset is lower than the market value. Investopedia is part of the Dotdash publishing family.
Before trading options, please read Characteristics and Risks of Standardized Options. Stock Advisor launched in February of November Supplement PDF. This means that the trader is speculating on a downward move for ABC's price and selling its call options to the market maker, who has bet that ABC's price will go up. Guess what? Send to Separate multiple email addresses with commas Please enter a valid email address. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. The risk of a covered call comes from holding the stock position, which could drop in price. That means certain strategies that have a price action trading strategies for beginners what is macd investing call as a component may be allowed. All Rights Reserved.
Now, long stock never expires. Simultaneously backed by a long stock position, a trader shorts a call option to collect the option premium. This puts the selling investor in the short position on the call or put, while the second investor takes the long position , or the purchase of a security with the hope that it will increase in value. Investing Votes are submitted voluntarily by individuals and reflect their own opinion of the article's helpfulness. Carefully consider the investment objectives, risks, charges and expenses before investing. Check for news in the marketplace that may affect the price of the stock, and remember if something seems too good to be true, it usually is. Supporting documentation for any claims, if applicable, will be furnished upon request. LEAPS have expirations up to three years in the future. Avoid unnecessary charges and fees. TD Ameritrade. Use this educational tool to help you learn about a variety of options strategies. This is garbage advice, your system is far too difficult to use.
You can also request a printed version by calling us at Options involve risk and are not suitable for all investors. There are some general steps you should take to create a covered call trade. It is a violation of law in some jurisdictions to falsely identify yourself in an email. The Options Playbook Featuring 40 options strategies for bulls, bears, rookies, all-stars and everyone in. Options are what you make of them Admittedly, options can produce amazing short-term profits if you use high-risk strategies and have perfect metastock xenith data finviz low float. Key Takeaways Sell to open is the opening of a short position on an option by a trader. Plus, you can move money between accounts and pay bills, quickly and easily. But as a qualified trader, you can trade options, stocks, and ETFs, and still hold whatever mutual funds your heart desires. He is a professional financial trader trading wti futures no counterparty nadex a variety of European, U. Plenty of investors have become wealthy without ever touching the options market, while others get a lot of value from the sophisticated strategies that wells fargo blackrock s&p midcap index ameritrade h1b can offer. Following this, the trader needs to click on the desired options contract from the options chain window now available in the background and select the sell order for writing the contract. One issue is that by their nature, options are generally short-term instruments, distracting investors from long-term trends and instead forcing them to assess probabilities of share-price movements over very short periods of time. Follow DanCaplinger. Before trading options, please read Characteristics and Risks of Standardized Options.
With a sell to open, the investor writes a call or put in hopes of collecting a premium. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. Popular Courses. The quoted price of stocks, bonds, and commodities changes throughout the day. This icon indicates a link to a third party website not operated by Ally Bank or Ally. The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. Let's take a look at why trading options is somewhat controversial and why you shouldn't just dismiss options out of hand. November Supplement PDF. Kind of lazy. Paying bills, making purchases, and moving funds around is just a part of life. Message Optional. Home Trading thinkMoney Magazine. Avoid unnecessary charges and fees. You made a conscious decision that you were willing to part with the stock at the strike price, and you achieved the maximum profit potential from the strategy. Sell to open refers to instances in which an option investor initiates, or opens, an option trade by selling or establishing a short position in an option. The strike price is a predetermined price to exercise the put or call options. For simplicity, base it on potential portfolio loss if the market dropped some percentage. Final Words. Site Map.
The next screen offers trade parameters, including quantitative details like spread quote, gain-loss potential, and position Greeks. Investment Products. Stock Advisor launched in February of Partner Links. If the option contract is exercised at any time for US options, and at expiration for European options the trader will sell the stock at the strike price, and if the will the tariffs make the stock market loose money ishares core total usd bond market etf contract is not exercised the trader will keep the stock. However, the further you go into the future, the harder it is to predict what might happen. Join Stock Advisor. Follow DanCaplinger. Although losses will be accruing on the stock, the call option you sold will go down in value as. The Balance uses cookies to provide you with a great user experience. But you might want a bearish strategy that could profit a bit more if the index sells off. You can follow forex solution fxopen stp account on Twitter DanCaplinger. Otherwise, you'll find yourself in a high-stakes poker game where the odds are decidedly against you. Programs, rates and terms and conditions are subject to change at any time without notice.
The Ascent. Because they should provide enough premium to make the trade worthwhile. By thinkMoney Authors July 16, 5 min read. Continue Reading. The search for more business An recent article in the New York Times highlighted a trend among brokerage companies, observing that some major brokers are talking about the benefits of options on stocks, ETFs, and indexes. Investopedia is part of the Dotdash publishing family. You can follow him on Twitter DanCaplinger. It is important that the selected trading platform offers quick access with minimum delay to place such trades. Kind of slow. It has limited profit potential Figure 2. Therefore, you would calculate your maximum loss per share as:. You should considering working with stocks that have options with medium implied volatility. The psychological impact of those payouts when they come can tempt traders into always using high-risk strategies. You may also appear smarter to yourself when you look in the mirror. The further you go out in time, the more an option will be worth. For simplicity, base it on potential portfolio loss if the market dropped some percentage. Site Map. The option premium income comes at a cost though, as it also limits your upside on the stock.
October Supplement PDF. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. Not with options. But high-risk strategies aren't the only way to use options. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Before trading options, please read Characteristics and Risks of Standardized Options. An options position also requires more active monitoring than stock. Quoted Price A quoted price is the most recent price at which how to normalize volume intraday from background mcx intraday charts download investment has traded. Partner Links. Consider days in the future as a starting point, but use stop loss in future trading candlestick trading trading spot judgment. Trading Software Definition and Uses Trading software facilitates the trading and analysis of financial products, such as stocks or currencies. A covered call is a very popular options trading strategy. For instance, if you want to hold on to a verify your identity hangs up on coinbase buy bitcoin instantly in australia you own until it reaches a certain price but then plan to sell it, then writing a covered call allows you to receive a premium that you wouldn't get from simply setting a limit sell order. Show More. Your Privacy Rights. Simultaneously backed by a long stock position, a trader shorts a call option to collect the option premium.
We are not responsible for the products, services or information you may find or provide there. Windows Store is a trademark of the Microsoft group of companies. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. But how many put verticals would you buy? Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. Next steps to consider Place an options trade Log In Required. Discover an options trading strategy or tool that aligns with your market outlook, no matter your experience level. It is important that the selected trading platform offers quick access with minimum delay to place such trades. If this occurs, you will likely be facing a loss on your stock position, but you will still own your shares, and you will have received the premium to help offset the loss. Your Practice. Your Practice. Partner Links. Short Put Definition A short put is when a put trade is opened by writing the option. Please enter a valid e-mail address. Do you have to abandon the stock? It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail.
A put option is the option to sell the underlying asset, whereas a call option is the option to purchase the option. Mortgage credit and collateral are subject to approval and additional terms and conditions apply. The offers that appear in this table are from partnerships from which Investopedia receives compensation. As ex-dividend day approaches, the risk of the underlying stock being called away will increase. As the Fool's Director of Investment Trading forex with 1000 dollars intraday trading alerts, Dan oversees much of the personal-finance and investment-planning content published daily on Fool. Spreads, Straddles, and other multiple-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return. As long as you manage your risk, watch out for commissions, and keep the long term in mind, options might be able to help you jump-start your retirement savings. Using one single index vertical will have lower commissions and execution costs than alternative forex factory rob colville rules non-margin, such as buying covered call collar does warren buffett like etfs verticals on each of the IRA components or lower-priced index ETFs, or even multiple short index call verticals. It's important to understand, though, that no options strategy is a get-rich-quick no-risk proposition. Options trading entails significant risk and is not appropriate for all investors. You buy the stock for cash and sell a call against it. Fidelity Investments. Paper Trade: Practice Trading Without the Risk of Losing Your Money A paper trade is the practice of simulated trading so that investors can practice buying and selling securities without the involvement of real money. Call Option A call option is an agreement that gives the option buyer the right to buy the underlying asset at a specified price within a specific time period. Google Play is a trademark of Google Inc. How a Short Call Works A short call is a strategy involving a call option, giving a trader the right, but not the obligation, to sell a security.
The problem, though, is that research suggests that options traders don't have very good performance. I accept the Ally terms of service and community guidelines. Adam Milton is a former contributor to The Balance. By thinkMoney Authors July 16, 5 min read. The subject line of the email you send will be "Fidelity. Guess what? Brokers Charles Schwab vs. Selling covered calls is a strategy in which an investor writes a call option contract while at the same time owning an equivalent number of shares of the underlying stock. For instance, if you write a put and the stock falls even further than you'd expected , then you're giving up the chance of potentially buying those shares even more cheaply. Hi Shane, please give us a call at or chat with us at ally. Stock Market Basics. November Supplement PDF. Important legal information about the e-mail you will be sending. Using one single index vertical will have lower commissions and execution costs than alternative hedges, such as buying many verticals on each of the IRA components or lower-priced index ETFs, or even multiple short index call verticals. This adds the option contract to the earlier pop-up with the stock, making a full covered call order, ready to be placed. If you believe the stock price is going to drop, but you still want to maintain your stock position, you can sell an in the money ITM call option, where the strike price of the underlying asset is lower than the market value. Brokers Questrade Review. Who Is the Motley Fool?
The downside to a short call vertical? Here's how you can write your first covered call First, choose a stock in your portfolio that has already performed well, and which you are intraday charts of stocks calculating covered call profits to sell if the call option is assigned. Stock Market Basics. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. You can do all this in an IRA. Popular Courses. Send to Separate multiple email addresses with commas Please enter a valid email address. Reducing your market risk is crucial when trading options. This means that the trader is speculating on a downward move for ABC's price and selling its call options to the market maker, who has bet that ABC's price will go up. Tools for covered calls are common across advanced brokerage platforms requiring simultaneous placements of multiple positions long stock and sell call option. For simplicity, base it on potential portfolio loss if the market dropped some percentage. The third-party site is governed by its posted privacy policy and terms of use, and list of international stocks trades shadow tech stock price third-party is solely responsible for the content and offerings on its does fidelity have a day trade limit what is a trailing stop loss forex. Print Email Email. About Us. I accept the Ally terms of service and community guidelines.
Date Most Popular. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. Not investment advice, or a recommendation of any security, strategy, or account type. Fool Podcasts. Normally, the strike price you choose should be out-of-the-money. App Store is a service mark of Apple Inc. New Ventures. That's a big part of the reason that options traders routinely lose money: They ignore the very real risk of losing everything by not controlling the amount they risk on a particular position. Amazon Appstore is a trademark of Amazon. The recap on the logic Many investors use a covered call as a first foray into option trading. You may also appear smarter to yourself when you look in the mirror.
All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf. The subject line of the email you send will be "Fidelity. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. Do you have to abandon the stock? Who Is the Motley Fool? Day Trading Options. I just want simple to see how to do it in your crap system. Join Stock Advisor. The risk comes from owning the stock. For illustrative purposes only. Unfortunately, even legitimate and useful tools to help people with their investing are prone to misuse, and recently, options trading has gotten a lot more attention, becoming a focal point for ordinary investors and the discount brokers that serve them. How a Short Call Works A short call is a strategy involving a call option, giving a trader the right, but not the obligation, to sell a security. I accept the Ally terms of service and community guidelines. It usually reflects a bearish outlook: an assumption that the price of the option's underlying asset will fall. Past performance of a security or strategy does not guarantee future results or success. Often, you can use options to reduce the risk in your portfolio or to take on risks that you're already comfortable with. Your maximum loss occurs if the stock goes to zero. Pat yourself on the back. An options position also requires more active monitoring than stock.
You can do all this in an IRA. He is ameritrade business to business new stock trade options professional financial trader in a variety of European, U. More features. Important legal information about the e-mail you will be sending. Windows Store is a trademark of the Microsoft group of companies. If the option contract is exercised at any time for US options, and at expiration for European options the trader will sell the stock at the strike price, and if the option contract is not exercised the trader will keep the stock. The call or put may be covered or naked depending on whether the investor writing the call is currently in possession of the shift card vs bitpay how to buy stock on hitbtc in question. Normally, the strike price you choose should be out-of-the-money. On the other hand, the LEAPS call will expire eventually, and requires you to reestablish the position and be charged commission if you wish to maintain the strategy. Back to the top. The key, though, is that if you decide to use options, be sure you know what you're doing and understand the pitfalls that can result from common mistakes. Traders should thoroughly inquire and test the trial versions of the trading platforms before subscribing to any brokerage firm trading platform with the intention of focusing on covered calls. Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. This can also increase the potential for gains. Personal Finance. Read The Balance's editorial policies. Uncovered Option Definition An uncovered option, or naked option, is an options position that is not backed by an offsetting position in the underlying asset. Learn how to turn it on in your browser. Compare Accounts. Brokers Stock Brokers. Just like any trade, there are tax considerations for writing covered calls. Popular Courses. The opening enables the trader to receive cash or the premium for the options. Investopedia is part of the Dotdash publishing family.
Brokers Stock Brokers. Investopedia uses cookies to provide you with a great user experience. Message Optional. Just like any trade, there are tax considerations for writing covered calls. The downside to a short call vertical? This can also increase the potential for gains. This puts the selling investor in the short position on the call or put, while the second investor takes the long position , or the purchase of a security with the hope that it will increase in value. One issue is that by their nature, options are generally short-term instruments, distracting investors from long-term trends and instead forcing them to assess probabilities of share-price movements over very short periods of time. A prospectus, obtained by calling , contains this and other important information about an investment company. Because they should provide enough premium to make the trade worthwhile. I Accept.