Are you actively investing or are you considering jumping into the market? If that’s the case, you should consider setting up real-time alerts to make sure you’re provided with up-to-date information. In this Schaeffer’s Investment Research Review, we’re going to look at real-time alerts for stock options and other investment vehicles.
Options have emerged as one of the hottest topics in investing in recent years. That said, options have been around for decades and while they have a reputation for being high-risk, many investors actually use options to mitigate risks.
Confused? Before jumping into Schaeffer’s Investment Research Review of real-time alerts, let’s first cover options. When it comes to investing, an “option” gives you the right to buy or sell an asset, such as a stock, at a predetermined price. However, options expire and if you don’t exercise them, they become worthless.
Options are usually much cheaper than stocks. If a given stock is selling for $100 a share, you might be able to pick up options for say $10 a piece. Since options are cheaper, you can often buy more of them, thus increasing your potential to generate profits.
Let’s say a specific stock is selling for $1,000 a share. You believe they’re poised for big gains in the coming weeks when their next earnings report will be released. You only have a thousand dollars, however, which means you can only buy one stock.
You might also be able to buy options to purchase the stock at a specific price, say $950, within the next 60 days. If stock prices go up, you can cash in the options and buy the stocks at $950. Then you can pocket the difference between that $950 and the increased stock price, say $1,200 (netting you $250 per share).
However, if stock prices don’t increase within 60 days and you don’t cash in your options, you’ll lose your entire investment.
Options can be tricky for first-time investors. Prices in financial markets can swing quickly and this will impact option costs. The difference between losses and investments when investing in options may come down to a matter of minutes. If you execute at the right moment and exercise your options at the optimal time, you might produce huge profits. Miss a price change, and you could lose money. Same with buying options, you want to buy low, sell high.
Our Schaeffer’s Investment Research Review finds that the company provides excellent information regarding options and market conditions. This way, investors can make informed decisions rapidly. When it comes to financial markets, knowledge may equal profit.
Real-time options alerts will help you decide when to exercise options and also whether options are necessary and/or a good deal given your situation. One of the best things about Schaeffer’s Investment Research’s real-time alerts is that they’re not only timely, but they’re also quite insightful and offer a lot of depth.
At the end of the day, if you’re going to engage in options trading, signing up for real-time options alerts is wise.