Options Strategy Strangle

Often the most effective investment strategies are also the simplest one. This post will discuss one such simple but perhaps one of the most effective Options Trading Strategy: The Strangle. There are two types of strangle strategies depending on whether you buy options or sell options.

1. Long Strangle: where you buy a Call and a Put Option on the same underlying with the same expiry date.
   
2. Short Strangle: where you sell a Call and a Put Option on the same underlying with the same expiry date.
   

This article will discuss details of Strangle Options strategy. And don't forget - Currently the main focus of Investo Blog is to discuss Options Trading. So remember to subscribe either by Email or in a RSS reader for updates.

Options Strategies where you hold positions in more than one Options are commonly referred to Options Spreads.

Long Strangle Spread

In a Long Strangle strategy is as explained below you buy both a Call and Put Option on the same underlying stock or index with the same expiry date. In my opinion, it is best to select out of the money Options when taking a position in Long strangle strategy. The above graph (courtesy - wikipedia) is a chart which plots profit earned by you on the expiry date of the Option against the price of the underlying at the expiry date. Notice that in a Long Strangle you make profit only if the price of the underlying moves beyond the strike price of any of the options by an amount greater than the total premium paid by you for buying the Options. In short - you make profit from a Long strangle only if the price varies a Lot.

1. Long strangle strategy is best used when you expect a lot of variation in the price of the underlying. A scenario which makes Long Strangle an ideal Options strategy is when Stock markets are unstable - e.g. just before announcement of key financial data during a recession.
2. The loss that can occur in a Long strangle spread is limited to the amount of premium that you pay to buy the Call and Put Options.
   

Short Strangle Spread

In a Short Strangle strategy you write or sell a Call and Put Option (instead of buying). In other words you are short on the Options. Both the Call and Put Options have the same expiry date and are on the same underlying stock or index. In the discussion of Long Strangle you must have noticed that if the price of the underlying does not move much then the buyer of the Options is at a loss while the seller of the Options makes profit. Short Strangle is exactly the Options Strategy where you sell Call and Put Options instead of buying them.

1. Short Strangle works best in stable markets where equities are fairly priced.
   
2. Avoid entering a position in Short Strangle just before announcement of quarterly results or key financial data.
3. The loss that can occur in a Short Strangle strategy is unlimited. Thus sometimes it maybe advisable to buy two deep out of the money Call and Put Options in a Short Strangle Strategy in order to limit your losses.
   

Delta Neutral Strangle Strategies

This is simply the strategy where you choose your call and put option in such a way that their delta sums up to zero. In my opinion, when there is no obvious preferred direction for the market (i.e. upward and downward movements are both equally likely) then it is profitable to enter a Delta Neutral position. Read more about Delta Neutral Strategies.

Straddle

Another Options Strategy closely related to Strangle is Straddle. The only difference between Straddle and a Strangle is that in a Straddle the Call and the Put Options that you buy have the same strike price. Straddle strategy will be discussed in a later post.

Options Trading Strategies Options Strategy : Long Strangle vs. Short strangle Options Greeks Option Greeks for Beginners (with free Options Calculator) Option Greek Delta and Delta Neutral Options Trading Strategy Option Greek Theta and its role in Options Trading Strategies Option Greek Vega and implied volatility Option Greek Rho - does it really matter in your Options Trading Strategies? Options Trading Basics From Forward contract to Futures. Stock Futures example - Futures trading basics explained. Stock Options trading examples - Call Option Example and Put Option example. Covered Call and Covered Put - Simplest Options trading strategy. Volatility and Options Pricing - How is Option premium priced? Lot Size of a Derivatives Contract - Contract Unit In the Money Stock Options At the Money Stock Options Out of the Money Stock Options Options Calculator

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Western Union Money Transfer

Western Union is a trusted way of transferring money. To transfer money from one country to another (e.g. from United States to Singapore or Singapore from Philippines), you go the nearest Western Union Agent location, pay them the money and then the person to whom you are sending money picks it up from a Western Union location near him/her. This post contains some quick-links useful for sending money from or to Singapore and links to find out exchange rates, fees etc. Continue reading this post, read more about how to send money using Western Union, or read about other ways to send money overseas. If you want to send money between some other countries not involving Singapore, then click on Western Union Global Money Transfer.

Western Union Locations in Singapore or elsewhere

Click on Western Union Locations to find agents or branches near you. Western Union has over 330,000 locations worldwide, so unless you are browsing your internet from Jungles in Africa or Amazon, chances are there is a Western Union location right next to you :)

Western Union Rates and Fees to send money to Singapore

Here is a quick idea of fees charged by Western Union to send money from United States, UK, Australia to Singapore. From these countries you can send money by going to an agent location or by phone or online. You can also use your credit card or debit card (VISA or Mastercard) to send money.

1. Fees/Rates for sending $500 to Singapore : from USA $43, from UK 32£.
   
2. Fees/Rates for sending $1000 to Singapore : from USA $68, from UK 42£.
   
3. Fees/Rates for sending $3000 to Singapore : from USA $135, from UK (when I checked the money transfer limit was £599).
   

Above values are approximate, just to give an idea. To find exact fees or check for other countries, to go Wester Union Home page and click on either Price Services or Price an online transfer.

Rates/Fees from Singapore.

If you want to send money from Singapore to other country go to Western union Singapore. Unfortunately they do not have a link on their home page to check rates for money transfer from Singapore. If you want to send money online, then you can send to only a few major countries. For example to send money to Philippines from Singapore you will have to personally go to an agent location. More about it on the above link.

Western Union is expensive !

You must have noticed that Western Union is damn expensive (from my point of view. Other than being a trusted source, its main advantage is that money is available for pick up in minutes. Perhaps Western Union provides the fastest way to transfer money. However if there is no such great urgency, then it is possible to find other money transfer or remittance services to Singapore.

Articles on Western Union Money Transfer Western Union Rates, Fees, Locations. Comparison of Western Union and MoneyGram How to Send Money using Western Union? Western Union Philippines Articles on Money Transfer Send Money Overseas or Abroad: The most popular and best ways to send money to your home country. Xoom Money Transfer Review Ikobo Visa - A new way to send money abroad where you send a re-loadable visa card to the beneficiary. MoneyGram Money Transfer and Money Order service. Online Remittance to India SBI Remittance Review - My most preferred method of sending remitting money to India. Good exchange rates. Remit2India Options to Send money to India Send Money to India by Paypal HDFC QuickRemit

External Links

Western Union Money Transfer - A trusted way to send money where beneficiary collects cash from a Western Union location.

MoneyGram - International Money Transfer and Money Order. You send money, beneficiary collects cash from a chosen MoneyGram agent or location.

iKobo - Send Money Worldwide Money Transfer by ATM Card. Useful for those who have to send money frequently. Check foreign exchange rates on the homepage of iKobo.

Xoom Money Transfer - Online Remittance from United States to various other countries. Xoom Fees are around $8 per transaction.

Send Money to India

ICICI Remit to India Online Money Transfer to India. ICICI Exchange rates.

SBI Remittance Online Money Transfer to India. SBI exchange rates.

Remit2India Online Money Transfer to India. Remit2India exchange rates.

HDFC Quick Remit Remit Money to India online from U.S., U.K., Europe and Singapore. HDFC Quick Remit exchange rates.

CitiBank Online Remit Remit Money to India from US.

Disclaimer

I have been sending money to India for quite a few years. I have been involved in at least 50 money transfers to India and used 4 to 5 different methods of online remittance. Although I do make efforts to provide accurate information about services related to online remittance, none of the opinion, experience or reviews in this post should be used for making any decisions to remit money to India or any other country. It is easily possible that my experience or opinion about a particular remitting service is different from yours. It is your money that you want to remit. So please verify the information from your own authentic sources before making a choice for remitting your money. I do not accept any liability for incorrect or inaccurate information. Some of the links in the posts may be affiliate links, however the opinions and reviews presented in the post remain honest and unbiased.

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Barack Obama & Joe Biden's Healthcare Reforms

Anyone who has watched the presidential debate of Obama and McCain will recall that Healthcare was one of the most prominent focus points of Obama's campaign. Finally the time has come when the actually promised Healthcare reforms will be signed into a bill. It is expected that the reforms will be passed by Senate and come into force by late this year (2009). This post describes some of the background in which these healthcare reforms will come into place and what one can actually expect from Obama's initiative on Health Care. The details of actual reforms are not out yet but as soon as they are, updates will be available on Investo Blog. You can subscribe to this blog's feed via RSS or Email to get the latest updates.

Rising Health Care costs in America - what is the exact problem?

The HealthCare costs in America are rising at a much faster rate than the salaries of an average American. Healthcare costs have increased four times the wages of an average American and the following four points underline the plight of United States healthcare system. (number from BBC).

1. Nearly 47 million people (out of total population of about 300 million) in United States are uninsured (without Health Insurance) since they cannot afford to pay health insurance anymore. That is a whopping 15.5% of the total population ! In addition to this, 25 million are under insured.
   
2. The percentage of employees with an annual deductible greater than $1,000 increased from 1% to 18% between 2000 and 2008.
3. Over 50% of all Personal bankruptcies in the United States are at least partially the result of medical expenses arising from inadequate coverage of health insurance.
4. As a nation, United States spends over $2.2 tn (or 16% of the GDP) on Health-Care. This is twice the amount of the average spending by other OECD countries.

A possible reason - Health Insurance companies as middlemen

Most individuals in United States buy their own Health Insurance from health insurance companies. Remember that the amount of health insurance premium paid by individuals not only covers the cost of actual medical treatment doctor's and hospital fees, but it also pays for the salaries and income of the Health Insurance companies. This in my opinion is an unnecessary burden on the individual and indeed it is quite high. Add to this the occasional healthcare scams that eat into millions of valuable dollars. So what is the solution? In my opinion the best solution is to minimize the role of middlemen - the Health Insurance companies. The only way this can be done is by Government run HealthCare schemes. This will be another step after bailouts that United States will have to take away from Capitalism.

What to expect in Obama's HealthCare reforms package

1. Most employers will provide employees with healthcare coverage.
2. Medicaid is currently a HealthCare program run by the United States government to provide healthcare to families with low income. According to proposals for new healthcare reforms, Medicaid will be expanded to cover more individuals.
3. House committees proposed a 1-5% surtax on Americans earning over $350,000 to pay for the additional costs which Government will incur in order to run its HealthCare reforms.

Obstacles to passing of Obama's Healthcare reforms package

The main obstacle or point of disagreement in passing the proposed Healthcare reforms is the revenue generating mechanism needed to fund the new reforms. President Obama failed to persuade Congress to cut tax deductions for wealthy Americans' charitable donations. Visit again for more updates.

Federal Tax Breaks, IRS Tax Credits, Tax Rebates in 2009 Economic Stimulus Package that maybe of interest to you Hybrid Car Tax Credit Cash for Clunkers - Is it Useful? Will there be a Second Stimulus Plan in 2009 or 2010? 2009 Obama Stimulus Package details explained. New Car Purchase Auto Stimulus details explained- Excise and Sales Tax deduction for new purchase of new vehicles. Cars- Cash for Clunkers - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500. $8000 First Time Home Buyer Tax Credit details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama. $800 Making work pay tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers). $250 Social Security Stimulus Check in 2009 Economic Stimulus Package. 2009 Cobra Stimulus Package 65% Reduction in Cobra Health Insurance Premium for qualifying individuals. 2009 Stimulus Checks? Economic Stimulus Payment $1000 Child Tax Credit, Dependent Tax Credit 2009 extension.

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The Concept of a Penny Stock

A penny stock simply means a stock which is very cheap. The name penny stock makes it sound as if the stock price is around a penny. However this name should not be taken literally. Sometimes stocks priced up to $5 could also be called as penny stocks. Penny stocks are popular because the so called 'best penny stocks' rise several 100 times their original price. Many online brokers or penny stock brokers try to attract investors to invest in penny stocks by showing past examples of how penny stocks have given fantastic returns. However, although investing in penny stocks is a very interesting strategy, one needs to understand the risks involved and study the measures that can be taken to reduce this risk. Interested in learning more about penny stocks? Read this entire post to understand the risks, strategies and advantages of investing in such cheap stocks.

How to buy Penny stocks? Who are Penny Stock Brokers?

Penny stocks are bought in exactly the same way as any other stock. However not all penny stocks are listed on standard big stock market exchanges. For example, in United States penny stocks which don't make it to NASDAQ are listed on OTCCB. In India several penny stocks are listed on BSE but not on NSE. Thus to buy penny stocks you have to register with a broker who can help you carry out trades on stock market exchanges. Some brokers specialize in trading in Penny stocks.

How to spot Top or Best Penny Stocks?

Here comes the big question. How to spot penny stocks which multiply in value over time? Is it easy to find a top 10 list for penny stocks? This is a tricky question. Although it is easy to justify past examples, one can never be sure which exact penny stock is 'the best'. So if you are really interested in making a lot of money with penny stocks first prepare your mind by realizing that it is risky to stick to a top 10 list here. Now you can continue to read the real strategy in investing in such cheap stocks.

A simple rule of Investing

While invest in Penny stocks, you must follow one simple rule - invest in a lot of them. Chances are that 90 or more stocks out of 100 will actually fail. Remember penny stocks are high risk investment assets. So just picking best few and investing in them could wipe out your capital. The secret mantra here is 'diversification'. Even if 90 out of 100 fail, the remaining few will hopefully multiply so much in their value that it will be a massive net profit for you. But wait, invest in a lot of such cheap stocks does not mean you pick a random large list. Here is where you have to do some homework. Continue reading...

Penny stock picks

It is a good idea to fix one rule or filter in order to screen and pick penny your stocks for investment. For example, you can pick stocks which meet the following two criterion.

1. Pick companies which produce something for which you can see there is a sustainable demand in the market.
2. Pick companies which are not heavily ridden with debt. Fix a lower bound on the debt/equity ratio.
   

Sometimes, I also give priority to companies which have a healthy P/B ratio. You can create your own filter depending on what you think is important. But the idea is to have a plan before you start screening and picking your list of penny stocks.

You may want to search for a List of penny stocks or share your thoughts/questions in a comment.

Investing in Stocks and Equities Search for Penny Stocks List Best Indian Stocks to invest in 2009 - Safe Stocks to Invest How to invest in stocks a recession? 3 Investing Tips Glaxo Pharma : GSK Pharma: Best Pharma Stock to Invest How to Invest in Stock Market? A 'Crude' Investment Strategy Investing in high P/E high growth stocks How to invest in Liquid Funds? Investing in Liquid Funds What are Exchange traded Funds? ETFs on NSE How to invest in Gold? Investing in Gold ETF Stock Market Basics: How to buy shares using demat? How to invest in stocks? Stock Investment for beginners Options Greeks Option Greeks for Beginners (with free Options Calculator) Option Greek Delta and Delta Neutral Options Trading Strategy Option Greek Theta and its role in Options Trading Strategies Option Greek Vega and implied volatility Option Greek Rho - does it really matter in your Options Trading Strategies? Stock Market Derivatives: Futures, Options From Forward contract to Futures. Stock Futures example - Futures trading basics explained. Stock Options trading examples - Call Option Example and Put Option example. Covered Call and Covered Put - Simplest Options trading strategy. Volatility and Options Pricing - How is Option premium priced? Lot Size of a Derivatives Contract - Contract Unit Options Trading Basics In the Money Stock Options At the Money Stock Options Out of the Money Stock Options

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Option Greek Delta

is perhaps the most popular among the Option Greeks - Delta, Theta, Vega and Rho. This article will discuss Option Greeks Delta and especially some strategies called Delta Neutral trading strategies based on the concept of this Greek. If you are a beginner, you might first want to read my article on Understanding Stock Options through an example and Option Greeks for Beginners.

Definition of Option Greek Delta

Delta of a Call or a Put Option is defined to be the change in the price of that Option caused by a unit change in the price of the underlying (stock, index or commodity).

Example of Option Greeks Delta

Among Several factors which influence the price of the Option is the current market price of the underlying. Let us say for example you have bought a Call Option on a stock whose current market price is $50. The strike price of the Call Option is $55 and the price is $3. Now suppose immediately after buying the call option, the price of the underlying stock increases to $51. Naturally this will make the option more expensive. You observe this change increases the price of the Option from $3 to $3.3. Thus the delta of this Option is $0.3. This is exactly the change in the Options premium caused by unit change (in this case $1 change) in the price of the underlying stock.

Some remarks and Characteristics of Delta

1. Delta of a Call Option Option is positive varies from 0 to 1. Delta of a Put Option varies from -1 to 0. Thus Delta of a Call Option is always positive while that of a Put Option is always negative.
   
2. Delta of an deep In-the-money Call Option is one while that of a put Option is -1. This is because deep in the money Options tend to behave like futures.
3. Delta of At-the-money Options is higher in magnitude than Options which are far Out of the Money. Indeed far Out of the Money Options tend to have a delta closer to zero.
4. For a given Strike Price in an Option Chain, the sum of Delta of the Call Option and Put Option for that strike price is always equal to 1.
   
5. The price change in an Options Premium can be caused by several factors in combination to the price change in the underlying. To get an idea, in the above example suppose the price of the stock falls to $49 the next day. Consequently the price of the Call Option falls from $3 to $2.5. This drop may not entirely be due to the fall in the price and also may be a combination of other factors like time depending to expiry date reduces or change in Implied Volatility.

How to Calculate Option Greek Delta? What is the formula for calculating delta?

The Formula for calculating delta is a bit complicated. However you can download Options Calculator which can be used to calculate not only the price of an Option but also the theoretical value of all Option Greeks, Delta, Theta, Vega and Rho.

Delta Neutral Trading Strategies

There are Option strategies based on the concept of Options Greek Delta. This post will discuss two such strategies. They are very easy to understand.

1. Delta Neutral Strategy 1: Buying Delta Neutral Strangle - This strategy can be used when you expect the price of an underlying stock or index to fluctuate by a large amount in the near future. Buy a suitable Call Option and calculate its Delta. Then buy a Put option on the same underlying having the same magnitude of Delta. For e.g. if your Call option has delta equal to 0.5, then you should buy a put option with Delta -0.5. Thus the combined delta of both the Options is equal to zero. That is why this is called "Delta Neutral" strategy. The advantage of holding a Delta Neutral combination rather than buying a random Call and Put is that you lose very little even if you decide to square off or quit after a small fluctuation in the price of the underlying. You gain the price of the underlying, as expected changes by a large amount.
2. Delta Neutral Strategy 2: Writing a Delta Neutral Strangle - This strategy can be used in a stable stock market when the price of the underlying stock or index is not expected to fluctuate by a large amount. In this situation you sell a Call Option on the stock and also a Put Option whose delta is negative of the Delta of the Call Option. The strategy is then to sell such a Delta Neutral Combination, then square off after some time. As time remaining to expiry decreases, the price of the Options you wrote will decrease. Then you gain by squaring off because of the drop in price.
   

Options Greeks Option Greeks for Beginners (with free Options Calculator) Option Greek Delta and Delta Neutral Options Trading Strategy Option Greek Theta and its role in Options Trading Strategies Option Greek Vega and implied volatility Option Greek Rho - does it really matter in your Options Trading Strategies? Stock Market Derivatives: Futures, Options From Forward contract to Futures. Stock Futures example - Futures trading basics explained. Stock Options trading examples - Call Option Example and Put Option example. Covered Call and Covered Put - Simplest Options trading strategy. Volatility and Options Pricing - How is Option premium priced? Lot Size of a Derivatives Contract - Contract Unit Options Trading Basics In the Money Stock Options At the Money Stock Options Out of the Money Stock Options

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New to Futures and Options Trading?

If you are very new to futures and options you might want to first read my post on Options examples and futures example. An investor who is new to futures and options trading is usually confused and a bit less confident while performing his first trade in futures and options. Naturally, these market derivatives are highly leveraged financial instruments and can be extremely risky. This post is meant as a easy guide for beginners to perform their first trade in the derivatives market.

Two warnings before we start

I know examples of people who have lost their entire capital and entire portfolio because of performing one wrong trade in futures or options. It is not my intention to scare you. In fact Futures and Options can be your best friends in the investment world if you get to know them properly. In order to avoid disasters i urge you (especially if you are a beginner) to take the following two warnings seriously.

1. Do not Trade in Futures at all. This is for time being until you become more and more familiar with derivatives.
2. Do not write or Sell Options. Only buy either call or put options.

The reason for sticking to the above two guidelines in the beginning is that in both the above trades there is a possibility of substantial or unlimited loss of capital. Instead I advice you to stick to only buying Call or Put Options in the beginning. The risk involved here is limited - at worst you may only lose the Options premium you paid. To be even safer you may first stick to only buying far out of the money options which are cheap and good for educational purpose.

Four things to choose in order to buy Options

In order to buy an Option you will have to select four of its parameters.

1. Underlying: First choose the underlying stock or index on which you want to buy an Option.
2. Type of Option: Select Call or Put Option. Sometimes the following abbreviations are used (1) CA for American Style Call Options. (2) PA for American Style Put Options. (3) CE for European Style Put Options (4) PE for European style Put Options. Note that for a given underlying you may not have all four types available. For example while trading Futures and Options on FONSE in India, all stock options are always American Style (i.e. they can be exercised anytime before the expiry date) and all Index Options are always European Style (i.e. they can be exercised only on the expiry date). The difference between American and European style Options is not very important for options trading strategies, because even if you cannot exercise European Style Options before expiry, you can always square them off, i.e. sell them. Indeed, even selling American style Options before expiry date is more profitable than exercising them, because you also get the extrinsic value or time premium of that option.
3. Expiry Date of the Option: There will be a range of expiry dates available for the Options you Choose. It is recommended that in the beginning, in order to get the feeling of Options trading you choose the nearest expiry date so that the Options are not very expensive. Options with expiry date after one or a couple of years are also available, usually on indices. They are called Option Leaps.
4. Strike Price of the Option: If this is your first Options trade, and you simply want to see how your Online trading account works, then I recommend you only buy out of the money options whose strike price is far away from the price of the underlying. They are cheap and much less risky. Later on when you have concrete Options strategies in mind, you can do whatever you want.

If you have any questions, feel free to ask in a comment. Moreover, if you are interested in futures posts on Options Trading and Investing in general then Subscribe to this Blog via RSS or Email.

Options Greeks Option Greeks for Beginners (with free Options Calculator) Option Greek Delta and Delta Neutral Options Trading Strategy Option Greek Theta and its role in Options Trading Strategies Option Greek Vega and implied volatility Option Greek Rho - does it really matter in your Options Trading Strategies? Stock Market Derivatives: Futures, Options From Forward contract to Futures. Stock Futures example - Futures trading basics explained. Stock Options trading examples - Call Option Example and Put Option example. Covered Call and Covered Put - Simplest Options trading strategy. Volatility and Options Pricing - How is Option premium priced? Lot Size of a Derivatives Contract - Contract Unit Options Trading Basics How to Buy Options? In the Money Stock Options At the Money Stock Options Out of the Money Stock Options

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An Introduction to Option Greeks & Option Pricing

Understanding Option Greeks is perhaps the most important step in learning to make money from Options. There are four Options Greeks - Delta, Theta, Vega and Rho. Each of the Option Greeks indicates the effect of a particular variable on the price of an option. Option Greeks are not very hard to understand if one understands the factors which influence the Options pricing.
The price of an Option, also known as Options premium depends on the following four factors.

1. The price of the underlying.
   
2. The number of days left to the expiry - the more the time left to expiry, the more is the risk for the seller of the option and hence more the price of the option.
   
3. Volatility of the underlying - Volatility is a measure of how much the underlying moves in a unit time. The options on volatile stocks or index is more than options on a less volatile stock.
   
4. The risk free interest rate - Interest rates are usually constant for short and medium term options and may only become a significant factor for long term options, also called as option leaps.
   

A natural question to ask.

These four factors, especially the first three typically change during the lifetime of the option. When they change, they have an effect on the Options price. It is now natural to ask the following

Question - How much effect do they have on the Options price? For example, if the price of the underlying stock increases by one (one dollar or one rupee or whatever currency), and all other factors remain the same, then how much will the options price of the Option change?
Answer - This is exactly measured by Option Greek Delta. Similarly effect of other three factors is measured by the remaining option Greeks - Theta, Vega and Rho.

More Explanation of Individual Option Greeks

• Option Greek Delta : Option Greek Delta is the amount by which the price of an Option changes if the price of the underlying (stock or index, etc.) changes by one. Further Reading: There are strategies based on the concept of Option Greeks Delta. Read more about Delta Neutral Options Trading Strategy.
  
• Option Greek Theta : Option Greek Theta is the amount by which the price of an option changes when the time remaining for the expiry date of the option falls by one day. As the time remaining for the expiry date of the option reduces, the price of the option falls. Thus Option Greek Theta is always negative. Further reading: Options Greek Theta and its role in Options Trading Strategies.
  
• Option Greek Vega : Implied Volatility of an underlying stock is one of the most influential factors in determining the price of an Option. Option Greek Vega measures the amount by which the price of the Option changes when the implied volatility of the underlying changes by one. Further Reading: Options Greek Vega and implied volatility for beginners.
  
• Option Greek Rho : As I said before, this is one Option Greek which most of us can ignore most of the time. The reason being for Options with expiry date a couple of months away, interest rates are usually constant. Further reading: Option Greek Rho: does it really matter?

How to Calculate Option Greeks?

The concept of Option Greeks itself is not hard to understand as explained above. In the individual posts you will also find easy examples. However, the formula to calculate the value of Option Greeks is quite complicated. So how to calculate Option Greeks? Fortunately I have uploaded an easy to use Options Greek Calculator in excel format. Click on Option Greeks Calculator to download it free.

Options Greeks Option Greeks for Beginners (with free Options Calculator) Option Greek Delta and Delta Neutral Options Trading Strategy Option Greek Theta and its role in Options Trading Strategies Option Greek Vega and implied volatility Option Greek Rho - does it really matter in your Options Trading Strategies? Stock Market Derivatives: Futures, Options From Forward contract to Futures. Stock Futures example - Futures trading basics explained. Stock Options trading examples - Call Option Example and Put Option example. Covered Call and Covered Put - Simplest Options trading strategy. Volatility and Options Pricing - How is Option premium priced? Lot Size of a Derivatives Contract - Contract Unit Options Trading Basics In the Money Stock Options At the Money Stock Options Out of the Money Stock Options

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If you are located in United States and planning to buy a new car, 2009 is perhaps the best time to buy a car, especially a Hybrid Car. In this post I will explain several reasons why buying a Hybrid Car in 2009 makes sense. If indeed there is any possibility that you will buy a car in the coming year, then spare 5 minutes of your time to read this entire post to see how Hybrid Cars can save you thousands of dollars with Government Incentives, apart from being environmentally friendly. Moreover, while buying a new Hybrid Car, you could also trade your old car for $4500.

What is a Hybrid Car?

Hybrid Cars have a conventional gas powered engine as well as a parallel rechargeable electric motor in order to achieve better fuel economy. Think about this - how much energy is wasted when your car is running at top speed and then you apply brakes? How about if this energy, instead of being wasted is used to recharge the Electric battery of your car? This is exactly what Hybrid Cars do. The combination of rechargeable electric battery and conventional fuel engine gives you almost twice the miles per gallon as compared to usual cars (see example below).

Top 3 Reasons to Buy a Hybrid Car - Government Incentives, Stimulus Package & Hybrid Car Tax Credits

The following are the top reasons which make buying a Hybrid Car the best option in 2009.

1. Auto Stimulus Sales tax deduction : The Economic Stimulus Package of Obama allows you to claim Tax deduction for Sales tax paid on your new car purchase, provided the new car costs less than $49,500. Click on the link to learn more about this new car incentive. This is available for all new car purchases, not just for Hybrid Cars.
   
2. Cash For Clunkers - Under this new Government Incentive, you can trade your old car for either $3500 or $4500 depending on the fuel economy rating of your old and new car. To read more about the qualifying criterion and tips, click on the link.
3. Hybrid Car Tax Credit : Hybrid Cars purchased after 2005 may be eligible for a Federal Tax Credit of up to $3400. This tax credit is slowly phased out once the manufacturer sells a given amount of vehicles. The exact amount of Hybrid car tax credit varies depending on the car model. To find out more about how much tax credit you get for various models of hybrid cars, visit the government website Hybrid Car Tax Credit details. Remember that the Hybrid Car tax credit is going to be slowly phased out once the manufacturer sell a fixed number of Hybrid Cars. So this tax credit will not be there forever.

Some Important Remarks

1. Toyota Hybrid Cars: Toyota has manufactured one of the most fuel efficient Hybrid Cars like Toyota Prius. Unfortunately, the Hybrid Car Tax Credit for all Toyota Hybrid Cars has been phased out.
2. Honda Hybrid Cars: Honda also has some of the most popular Hybrids like Honda Insight. Unfortunately the Hybrid Tax Credit for Honda Cars has also been phased out.
   
3. GM Hybrid SUVs : Most of Hybrid Cars of GM are actually Hybrid SUVs and although they are eligible for Hybrid Tax Credit and Sales tax deduction, they may not qualify for Cash for Clunkers program since they have a fuel economy rating of less than 22 miles per gallon.
4. Hybrid Car Tax Credits are still available on Hybrid Cars manufactured by Ford, Chrysler, Mazda and Nissan.
5. A complete list of Hybrid Cars, sorted by manufacturer is available on the Government website on Hybrid Car Tax Credit. The mileage or fuel economy rating of cars can be checked on the Government website fueleconomy.gov.
   

Other two reasons to buy a Hybrid Car are

1. Hybrid Cars have a better fuel economy rating and can save you hundreds or even thousands of dollars per year in Gasoline (explained below with an example).
2. Hybrid Cars are Green or Environmentally friendly.
   

How much can a Hybrid Car save you in Gasoline?

Let us look at a concrete example of how much can you save with a Hybrid car as compared to a non-hybrid car. Toyota Prius, one of the first popular Hybrid Cars in the market gives a mileage of about 45 miles per gallon. Other cars typically have a mileage of about 20-25 mpg and SUV's have a mileage of even less than 20 miles per gallon. So Toyota Prius Hybrid will give you at least 20 miles extra per gallon of gasoline. If the price of gasoline is even $2 per gallon, and you drive about 30-35 miles per day on an average, that translates into a savings of $600 per year at least ! Remember Gas prices are highly volatile and once the world recovers from the current recession, this savings can easily be thousands of dollars per year depending on how much you drive.

For those you car environmental concern is an additional very important reason to buy a Hybrid Car. Pollution and its effects on global climate are so drastic that changes in the climate have become blatant. In order to stop overusing world resources it is important that we turn our attention to more fuel efficient and less polluting vehicles. This makes Hybrid Cars an obvious choice.

Federal Tax Breaks, IRS Tax Credits, Tax Rebates in 2009 Economic Stimulus Package that maybe of interest to you Hybrid Car Tax Credit Cash for Clunkers - Is it Useful? Will there be a Second Stimulus Plan in 2009 or 2010? 2009 Obama Stimulus Package details explained. New Car Purchase Auto Stimulus details explained- Excise and Sales Tax deduction for new purchase of new vehicles. Cars- Cash for Clunkers - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500. $8000 First Time Home Buyer Tax Credit details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama. $800 Making work pay tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers). $250 Social Security Stimulus Check in 2009 Economic Stimulus Package. 2009 Cobra Stimulus Package 65% Reduction in Cobra Health Insurance Premium for qualifying individuals. 2009 Stimulus Checks? Economic Stimulus Payment $1000 Child Tax Credit, Dependent Tax Credit 2009 extension.

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Western Union is one of the most trusted money transfer services. This post will discuss links and details on how to receive or send money from Colombia (Bogotá and other cities) using Western Union.

If you want to transfer money To Colombia (Bogota & Other cities) from abroad, go to
Western Union Global Rates, Fees & Tips.

How to send money using Western union from Colombia:

The only way to transfer money from Colombia to any other country is cash or money transfer from an agent location. The way it works is the following :

1. Find a Western Union Agent location which is nearest to the person to whom you want to send money. The person can be in any other country and you can find global Western Union locations here
2. Go to an agent location in Colombia. Western Union has over 580 branches in Colombia spread over 100 cities. To find the nearest location to you, click on Western Union Locations in Colombia. Tell him/her that you want to transfer money to the chosen location. You will have to pay the Western Union agent.
   
3. Western Union typically charges $10-$35 for sending about $1000. The exact price varies depending on the locations and amount. Unfortunately for sending money from Colombia, there does not seem to be an online link to estimate the fees and rates.
   
4. Thats it! Money is now available within minutes for the receiver to pick up. The person to whom you sent money will have to go to the chosen agent location and pick up cash. He/she will have to carry an identity card to prove his/her identity.
   

On the bottom right column you will find some additional useful links for Money Transfer.

Articles on Western Union Money Transfer Western Union Rates, Fees, Locations. Comparison of Western Union and MoneyGram How to Send Money using Western Union? Western Union Philippines Articles on Money Transfer Send Money Overseas or Abroad: The most popular and best ways to send money to your home country. Xoom Money Transfer Review Ikobo Visa - A new way to send money abroad where you send a re-loadable visa card to the beneficiary. MoneyGram Money Transfer and Money Order service. Online Remittance to India SBI Remittance Review - My most preferred method of sending remitting money to India. Good exchange rates. Remit2India Options to Send money to India Send Money to India by Paypal HDFC QuickRemit

External Links

Western Union Money Transfer - A trusted way to send money where beneficiary collects cash from a Western Union location.

MoneyGram - International Money Transfer and Money Order. You send money, beneficiary collects cash from a chosen MoneyGram agent or location.

iKobo - Send Money Worldwide Money Transfer by ATM Card. Useful for those who have to send money frequently. Check foreign exchange rates on the homepage of iKobo.

Xoom Money Transfer - Online Remittance from United States to various other countries. Xoom Fees are around $8 per transaction.

Send Money to India

ICICI Remit to India Online Money Transfer to India. ICICI Exchange rates.

SBI Remittance Online Money Transfer to India. SBI exchange rates.

Remit2India Online Money Transfer to India. Remit2India exchange rates.

HDFC Quick Remit Remit Money to India online from U.S., U.K., Europe and Singapore. HDFC Quick Remit exchange rates.

CitiBank Online Remit Remit Money to India from US.

Disclaimer

I have been sending money to India for quite a few years. I have been involved in at least 50 money transfers to India and used 4 to 5 different methods of online remittance. Although I do make efforts to provide accurate information about services related to online remittance, none of the opinion, experience or reviews in this post should be used for making any decisions to remit money to India or any other country. It is easily possible that my experience or opinion about a particular remitting service is different from yours. It is your money that you want to remit. So please verify the information from your own authentic sources before making a choice for remitting your money. I do not accept any liability for incorrect or inaccurate information. Some of the links in the posts may be affiliate links, however the opinions and reviews presented in the post remain honest and unbiased.

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Stimulus Package and plans are being talked about everywhere. The following three rebates, federal tax credits or incentives (whatever you call them) in economic stimulus plan are among the most important ones.
Housing Stimulus ($8000 tax credit for first time home buyers)
Auto Stimulus (Sales tax deduction for purchasing new cars under $49500).
Cash for Clunkers (A new car incentives program where you can get $3500 or $4500 for your old junk car).

This is in no way a complete list of all stimulus and federal tax credits. There is a lot more. The Solar tax credit, other renewable energy tax credits, tax credits for installing new efficient doors and windows, Making work Pay stimlulus, Cobra Stimulus, and lots of others. And moreover, we can already hear hints (or rumors?) of a second stimulus plan.

Is Cash for Clunkers really useful ?

Don't misunderstand me here when I use the word 'useful'. Of course the Cash for Clunkers is awesome if you are planning to buy a new car. This is a program where new car buyers can get either $3500 or $4500 for their old junk car (also called as clunkers). Yes, doesn't matter how old that car is or how much worth it is. Even if it is worth $100 or say even if it worth only weight of its scrap metal, you can get $4500 Cash for Clunkers cash rebate / discount voucher. Isn't that fantastic? Let me give you a quick overlook of the details involved in Cash for Clunkers program.

Cash for Clunkers Details

Does your Old Car qualify? If you have a Old Car made after 1984 and which has a fuel economy rate or mileage of at most 18 mpg (miles per gallon), your Old car is eligible for Cash for Clunkers cash incentive. You can find the fuel economy rating of your car on fueleconomy.gov.
Does your New Car qualify? In order to get the benefit of Cash for Clunkers, the New Car you purchase must cost at most $45,000 and must have a fuel economy rating of at least 22 mpg (miles per gallon).
How much Cash for your Clunkers? If both your Old car and New car qualify you can trade your clunkers for $3500. If it happens that your Clunkers is really really junk, i.e. to be precise the fuel economy rating of your new car is 10mpg more than that of your Old car, you get even more $4500.

Back to the debate, is Cash for Clunkers really useful?....
By useful here, I mean useful for the economy. There are various points of debate here. First of all the requirement of new car having 22mpg could have been raised in order to ensure that only the most fuel efficient cars are encouraged. 22mpg - Most of new cars (even some SUVs?) would fall under this category. Moreover, would this program lead to abuse? Since Cash for Clunkers can be used in addition to Auto Stimulus and Hybrid Car Tax Credits, this is perhaps the best time to buy car by using government incentives provided at the cost of taxpayers money. I would love to hear Opinion from the readers of this blog. Please share your opinion in a comment.

Federal Tax Breaks, IRS Tax Credits, Tax Rebates in 2009 Economic Stimulus Package that maybe of interest to you Cash for Clunkers - Is it Useful? Will there be a Second Stimulus Plan in 2009 or 2010? 2009 Obama Stimulus Package details explained. New Car Purchase Auto Stimulus details explained- Excise and Sales Tax deduction for new purchase of new vehicles. Cars- Cash for Clunkers - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500. $8000 First Time Home Buyer Tax Credit details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama. $800 Making work pay tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers). $250 Social Security Stimulus Check in 2009 Economic Stimulus Package. 2009 Cobra Stimulus Package 65% Reduction in Cobra Health Insurance Premium for qualifying individuals. 2009 Stimulus Checks? Economic Stimulus Payment $1000 Child Tax Credit, Dependent Tax Credit 2009 extension.

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Western Union Money Transfer is a renowned and trusted way of sending money overseas or back to your home country. In this article you will find details on sending money to Philippines using Western Union. The biggest advantage of Western Union is that money that you send is available for pick up at an agent location within minutes. This is perhaps the quickest way of transferring money. Moreover, since Western Union has over 300,000 agent locations worldwide, it is quite likely that you will find a convenient agent location for the receiver to pick up the money.

Before I give an idea of how much does it cost to send money to Philippines by Western Union, let me recall some quick facts which you can also find in my posts Western Union-Rates, Fees, Locations and How to Send Money using Western Union.

1. If you are sending money from United States, UK, Australia or some other select countries, you can use your Visa or MasterCard Credit Card to pay Western Union to send money to Philippines.
   
2. You may also have an option to send money directly to a qualifying bank account of your receiver in Philippines using Western Union. Please go to Western Union Homepage and check if this option is indeed available for you. Money Transfer directly to a bank account in Philippines takes about 3 business days.
   

Western Union Rates and Fees

Here is a list of Western Union Fees for sending $100, $500, $1000, $1500, $2000 and $5000 for sending money to Philippines from United States, California State. These are just indicative and if you are sending money to Philippines from some other location scroll down below for useful links.

1. $100 : Western Union Fees = $12.
2. $500 : Western Union Fees = $12.
3. $1000: Western Union Fees = $15.
4. $1500: Western Union Fees = $22.50.
5. $2000: Western Union Fees = $30.
6. $5000: Western union Fees = $75.
   

Overall, the fees charged by Western Union are quite significant and if you are not in a hurry or you are sending a large amount of money (say over $2000) then you may consider other money transfer options. However if convenience and availability of quick cash for your beneficiary is important, then Western Union is exactly meant for you. To find Western Union Fees for sending money to Philippines from other locations and also Western Union Exchange Rates, do the following :

• Step 1:Go to http://westernunion.com and select the country from where you want to send money on the top right drop down menu.
  
• Step 2: Click on Price Services and you will be taken to a page where you can find fees and exchange rates for sending money to Philippines.
  

Compare Western Union & MoneyGram

MoneyGram is also an alternative option for sending money to Philippines from United States. However the MoneyGram fees for Philippines are slightly higher than those of Western Union. Note however, MoneyGram also offers a home delivery option through its partner LBC. Read more about MoneyGram.

Articles on Western Union Money Transfer Western Union Rates, Fees, Locations. Comparison of Western Union and MoneyGram How to Send Money using Western Union? Western Union Philippines Articles on Money Transfer Send Money Overseas or Abroad: The most popular and best ways to send money to your home country. Xoom Money Transfer Review Ikobo Visa - A new way to send money abroad where you send a re-loadable visa card to the beneficiary. MoneyGram Money Transfer and Money Order service. Online Remittance to India SBI Remittance Review - My most preferred method of sending remitting money to India. Good exchange rates. Remit2India Options to Send money to India Send Money to India by Paypal HDFC QuickRemit

External Links

Western Union Money Transfer - A trusted way to send money where beneficiary collects cash from a Western Union location.

MoneyGram - International Money Transfer and Money Order. You send money, beneficiary collects cash from a chosen MoneyGram agent or location.

iKobo - Send Money Worldwide Money Transfer by ATM Card. Useful for those who have to send money frequently. Check foreign exchange rates on the homepage of iKobo.

Xoom Money Transfer - Online Remittance from United States to various other countries. Xoom Fees are around $8 per transaction.

Send Money to India

ICICI Remit to India Online Money Transfer to India. ICICI Exchange rates.

SBI Remittance Online Money Transfer to India. SBI exchange rates.

Remit2India Online Money Transfer to India. Remit2India exchange rates.

HDFC Quick Remit Remit Money to India online from U.S., U.K., Europe and Singapore. HDFC Quick Remit exchange rates.

CitiBank Online Remit Remit Money to India from US.

Disclaimer

I have been sending money to India for quite a few years. I have been involved in at least 50 money transfers to India and used 4 to 5 different methods of online remittance. Although I do make efforts to provide accurate information about services related to online remittance, none of the opinion, experience or reviews in this post should be used for making any decisions to remit money to India or any other country. It is easily possible that my experience or opinion about a particular remitting service is different from yours. It is your money that you want to remit. So please verify the information from your own authentic sources before making a choice for remitting your money. I do not accept any liability for incorrect or inaccurate information. Some of the links in the posts may be affiliate links, however the opinions and reviews presented in the post remain honest and unbiased.

Read more ...