Cash Flow From Dividends Or Share Sales?

Recently, I got a question from one of my readers that I think is ideological one. The question was: What do you think about the statement that it makes no difference to receive dividends or to sell shares? Ultimately, it would lead to the same result.

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Is The Bear Market Over?

I’m getting almost daily mails from people asking me whether the bear market is over. Well, I don’t have a crystal ball. But to address these questions, I’d like to step onto the thin ice of speculation as the people seem to be afraid to miss investment opportunities. At least, according to such mails, there is still a FOMO. And with this, from a psychological point of view, the bear market is not over yet. But let’s delve more objectively into this.

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What Does Cornering A Market Mean?

In the world of trading, there were several occasions of so-called cornering a market. This term means, in general, a situation where someone with a certain market or financial power is able to create an artificial shortage of whatever. In this article, we will take a closer look at the term cornering a market and check some examples. Historical Background Of Cornering A Market The term cornering a market got publicly known back in the late 19th century when the futures traders in Chicago were exploiting an advantage by creating an artificial shortage called “corners”. That’s where the term cornering a market comes from. How did they do this? Well, they used the anonymity of futures, and bought as much of them as there was sufficient to control the market. Usually, it was pretty often the wheat traders who made the term “cornering” infamous! As they bought, the sellers of the wheat futures were obligated to deliver. That’s how the idea of futures works. But there was, of course, a lot of speculation, also among the futures sellers. A certain amount of them sold more futures than they could deliver. Doing this, they were just speculating that the price of the futures would fall, and with that, they would buy their too many sold futures back for a lower price and thus make an extra profit. And here was the catch: As one wheat trader, or sometimes a couple of them, cornered the market and held the most contracts in…

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What are LEAP Options?

The term for LEAP options (also called LEAPS) is Long-Term Equity Anticipation Securities. A boring term, I know. But it’s simple and not complicated at all: LEAPS are just normal options (securities) with a very long expiration time. Whereupon “very long” means an expiration time longer than one year. But anything else is practically the same. In this article, we will take a closer look on the whole topic about this type of options and check how to make money in stocks (or even futures) by trading LEAPS.

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What is the Options Price Reporting Authority?

Accurate real-time data is essential to the proper functioning of the options market, but it would be tremendously challenging for individual associations to collect and process options market data. Exchanges involved in options trading produce huge amounts of data, far beyond of data than other asset classes generate. In other words: options data traffic produces at least 75% of all market data! This growth in data has caused a seemingly interminable increasing demand in hardware and software for vendors and customers as well. This all by increasing of the operating costs with just a little or even no benefit for the market participants. Hence, a solution has to be developed to address the issue. The solution which was developed has got the name Options Price Reporting Authority (OPRA).

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