Portfolio Management Software
Overview Spreads show the difference in price between two securities. Spreads are normally calculated using options. Interpretation A spread involves buying one security and selling another with the goal of profiting from the narrowing or expanding of the difference between the two securities. For example, you might buy gold and […]
Overview The Efficient Market Theory says that security prices correctly and almost immediately reflect all information and expectations. It says that you cannot consistently outperform the stock market due to the random nature in which information arrives and the fact that prices react and adjust almost immediately to reflect the […]
Overview The Four Percent Model is a stock market timing tool based on the percent change of the weekly close of the (geometric) Value Line Composite Index. It is a trend following tool designed to keep you in the market during major up moves and out (or short) during major […]
Overview The most widely used option pricing model is the Black-Scholes option valuation model which was developed by Fisher Black and Myron Scholes in 1973. The Black-Scholes model helps determine the fair market value of an option based on the security’s price and volatility, time until expiration, and the current […]
Overview CANSLIM is an acronym for a stock market investment method developed by William O’Neil. O’Neil is the founder and chairman of Investor’s Business Daily, a national business newspaper. He also heads an investment research organization, William O’Neil & Company, Inc. Drawing from his study of the greatest money-making stocks […]