Regardless of what options you are buying, the deeper in the money the better. There are a couple of reasons why this is the case. One simple reason why is that the time value attached to each option is lower for deeper in the money options. Another reason why is that it provides extra cover intrinsic value wise if the trade does not do what was planned.
Analysis of the recent trades at Trading Futures ETF Options blog has shown that one of the reasons for the sale of the option is due to its time value decay. Minimizing it by buying deeper in the money calls seems to be an appropriate action. Trades might be able to last longer and become more profitable if the time value did not decrease at such a high rate.
Tuesday, October 30, 2012
Wednesday, October 3, 2012
Who Gets Credit For Business Success?
There has been a debate recently as to who deserves credit for
building a successful business. On one side, you have people who say the
founders or the person in charge of the business is worthy of the accolades.
The other side says the community as a whole deserves the credit. Even though
both deserve much credit, each deserve a different type. In the paragraphs
below, an attempt will be made to explain that it is the community that
deserves the overall credit for building a successful business while at the
same time very specific credit should go to the owner or person in
charge.
Have you ever been to a business dinner and heard the person in
charge say:"This business' success could not have been done without your
hard work!"? This pretty much is a clear admission that the success of the
business does not lie with them alone. That is not to say that they do not
deserve some form of credit. The founder of a business has ideas and a plan for
a business. They find the initial materials, labor, partners, and customers to
run the business. They provide the initial motivation for a successful
business. But there comes a point where the idea and business responsibilities
outgrow the abilities of a few human beings. Even when the person is still in
charge, a successful business is still run in a way that far outweighs the
individual's talents. There just isn't enough time for one person to run a
successful business on their own. Some of the credit that should go (and
normally does) to the owners are a proportional share of the financial rewards.
They also are given credit for the idea of the business by being interviewed
and shown in the press. Most individuals that are successful with a business
idea and plan are looked to to comment or help on building other similar
businesses.
That brings us to the community, and how much credit it deserves
for a successful business. To understand how important the community is in a
business' life, some questions need to be answered. Does the company have other
employees? Are there other shareholders? Have there been ideas proposed for the
business that did not come from the owner? Did the company ever need financing?
Does the company have customers? Do public service institutions help the
business along the way? If the answer to these questions is yes, then you get the
idea of how important the community is to a successful business.
The reason that there are issues with where credit is deserved is
due to the egos of the relevant parties. Some individuals that put so much of
their lives into an idea but doesn't get full credit sometimes get hurt. Some
communities also need to understand that without the appropriate credit given
to the individual, ideas do not end up being realized. There needs to be a mix
so that the most important thing happens; making the idea come to
fruition.
There are many impactful parts to a successful business. Credit is
to be shown to all in different styles and measures. A successful business
cannot be successful without both the individual and the community. Many good
ideas have not taken off due to the lack of credit given to either the
individual or the community. Let's make sure that as individuals we accept acknowledge
the community's help in bringing success to the idea. As well, we as a
community need to recognize how courageous and awesome people who stick their
necks out in presenting and planning a successful business really are.
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