Ryan Galiotto

Archive for October, 2009

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Stock options are contracts to buy (or sell) a share at a certain price before a certain time in the future. Buyers of options have the right to buy the stock at the specified price, but they are not obligated to exercise their option.  Sellers of options have the obligation to sell the underlying stock if the buyer of the option wishes to exercise it.

A contract to buy is called a ‘call option’. The buyer of a call option hopes the price of the underlying share will rise, allowing him to buy it at less than market value. The seller of the call option expects that the price of the stock will not rise, or at least is willing to accept a partial loss of profits made from selling the call option.

For example: An investor buys a call option on IBM with a ‘strike price’ (the price the stock can be bought) of $50. The current price of IBM shares is $40 and the cost of the call is $5. If the price rises above $55 (strike price + cost of call) the buyer could exercise his right to buy and make a profit by reselling on the open market. The seller would still gain from the increase in price from $40 to $55 plus the $5 he made by selling the call. If the price remains below $55 the call would not be exercised and the seller would profit by $5 per share and the buyer would lose his $5 per share.

Options are traded on specific stocks. They detail the name of the share, the strike price (the price the stock can be bought or sold at), the expiration date and the premium (the price of the option itself). After the expiration the option cannot be exercised and is worthless. Options have a value and are actively traded. An option to buy Microsoft, for example, is listed like this:

MSFT Jan10 22.50 Call at $2.00

This tells us that an option to buy 1 share of Microsoft at $22.50 before the third Friday in January 2010 can be bought for $2.00. Options usually expire on the third Friday of the specified month, and they are usually traded in lots of 100. To buy this particular option you would have to pay $200 (plus brokerage fees).

An option to sell a share is called a ‘put option’. This gives the holder the right (but not the obligation) to sell a particular stock within a certain time period at a certain price. In this situation the buyer is expecting the price of the stock to fall but does not want to sell outright in case the price rebounds. The seller feels that the price is stable or is willing to acquire the stock at the low price. 

For example: An investor buys a put option on Microsoft with a ‘strike price’ (the price the stock can be sold) of $35.  The current price of Microsoft is $40 and the cost of the put is $5. If the price falls below $30 (strike price + cost of put) the buyer could exercise his right to sell at a higher price than market. The seller would have to buy the share at the higher-than-market price but any losses are offset by the $5 he made by selling the put. If the price remains above $30 the put would not be exercised and the seller would profit by $5 per share and the buyer would lose his $5 per share.

As can be seen, stock options can be used to protect against loss or as an investment opportunity in their own right.  They are generally used as part of a trading strategy which combines the purchase of stock with the purchase of options.

For example, in a bull (rising) market you could buy stocks and call options and sell put options. This allows you to take full advantage of rising stock prices – the stocks you buy will rise in value, the call options will allow you to buy stock at less than market prices, and if the market dips and the buyer of your put option exercises it, you can pick up additional stocks at low prices. If the buyer does not exercise the option, you make money from the sale of the option.

Conversely, in a bear market, you can sell stocks, sell calls, and buy puts to limit losses and generate profits.  Unstable markets can use a mixture of puts and calls to maximize profit potential.

Options are traded on Futures and Options Exchanges. There are 6 such exchanges in the United States including the American stock Exchange (AMEX) and the Chicago Board Options Exchange (CBOE). In Europe the main options exchanges are Euronext.liffe and Eurex.

For more financial help please see free etf trends and living off of trend trading.

business financing is becoming more difficult as well as increasingly important~The need to avoid malpractice for small business loans has become both more important and difficult at the same time~The process of avoiding malpractice for small business financing has simultaneously become more important and difficult}. Since ignoring the issue might result in devastating costs, any time and effort required to avoid such problems should be easy to justify. When there is a serious failure involving professional duty, commercial funding malpractice should be a real concern. Malpractice can occur with both lenders and brokers for commercial mortgages and commercial loans when commercial borrowers are seeking business loans.

working capital loan transactions is dealing with an inexperienced advisor~Dealing with an inexperienced advisor is one of the biggest recent causes of malpractice involving working capital loan transactions~Inexperienced advisors are one of the biggest factors in malpractice associated with commercial finance transactions}. Starting a number of months ago, chaotic conditions began to impact residential real estate. Since so many former residential brokers and lenders are now attempting to provide business loans after their residential lending activities were eliminated, this has frequently resulted in problems for commercial borrowers.

Inexperience involving {business financing is never a good thing when you are describing a commercial lender or broker~When describing a commercial lender or broker, inexperience involving small business financing is never a good thing~When choosing a commercial broker or lender to work with, inexperience involving business financing should be avoided whenever possible}. The routine complexity of small business loans combined with inexperience is likely to result in a receipe for malpractice.

Commercial borrowers should not assume that a lender or broker will be even marginally capable of properly executing commercial mortgage loans, even if they did a superb job with residential financing. There are many key differences between residential loans and small business financing. It often requires years of experience to be a master of commercial loans.

Business cash advance programs are another ongoing source of working capital financing malpractice possibilities. Most of these agents represent only providers for credit card receivables financing and simply do not understand business loans in general. All too often these advisors will be incapable of assisting with other small business financing services because they are focused on only their own specialized service.

While not as obvious, malpractice possibilities with merchant cash advances are related to the earlier example (inexperienced lenders and brokers). Many call centers which previously dealt with residential real estate financing have switched to credit card processing and merchant loan programs. When complicated working capital management services are involved, inexperience is never a good thing.

When assessing potential obstacles for working capital loans and business loans, the malpractice examples described above are just the tip of the iceberg in most cases. The value and importance of being prudent with small business financing is supported by this precautionary comment.

No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is happening now. But challenge always gives rise to opportunity, and opportunistic real estate investors are rising to the challenge.

‘Bulk REO Investing’ is the name of the new strategy, and it’s captured the attention of many well-heeled investors.

Consider with me, if you will, the fundamentals of the Bulk REO business.

To understand Bulk REO investing is to understand the foreclosure process.

When a home owner begins to miss payments on their mortgage, the lender begins to send late/overdue notices to the home owner. After a certain period, the lender will then formally begin foreclosure proceedings. ‘Pre foreclosure’ is the name given to the time between implementation of the foreclosure proceedings and the public auction.

Foreclosure is completed when the property is put up for auction. Ownership of the property is returned to the lender if the property is not sold at auction. The lender then categorizes the property as ‘Real Estate Owned’ – or ‘REO’ for short.

Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale. But as a consequence of the weak economy, lenders are frequently selling their REO properties far below their actual value. Lenders are willing to do so in exchange for the buyer’s agreement to purchase a ‘package’ of REO’s rather than a single property.

Qualified real estate investors are increasingly finding once-in-a-lifetime opportunities in these REO packages. REO packages are easiest to buy and sell with a well regarded source of financing in place. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Salvatore Buscemi of Dandrew Capital Partners, a hedge fund in New York.

The term real estate investing likely brings a number of things to mind. You likely leap to real estate investing as real estate portfolios and real estate retirement plans, and then you may expand to thinking of short sales, bulk reo investing or virtual real estate investing. You may also wonder what type of role these things can play in your life as a real estate investor in different types of economy.

There is a lot to learn about real estate investing. Getting the most out of real estate investing education involves being familiar with basic RE info. Whether you are interested in short sales, bulk reo sales, virtual real estate or just improving your abilities as a real estate investor, you need to know some real estate investing basics in order to succeed. Here are three real estate investing basics that even some experts do not really know:

1. You will always get a positive yield with real estate investing education. Every real estate deal has the potential to create thousands of dollars in potential wealth. Understanding how to get that wealth will be the key to your success. Learning about real estate increases your chances of success when you do a real estate deal. Small investments yield big results when you invest in learning and then implement what you learn.

2. You have the ability to succeed in real estate investing in any economy. Many people are under the misconception that success is possible in real estate only when the economy is good. In reality, poor economies are great for real estate investors. You frequently can get properties at deep discounts. You could also locate deals that would not exist in a booming economy. Poor economies can turn based on active real estate investing. When the economy is not so good, short sales, bulk reo sales and virtual real estate are great. You can save yourself from financial difficulty along with others by knowing how to do these deals.

3. You do not need a lot of money to be a successful real estate investor. You can succeed in real estate investing no matter how much money you have. There are lots of types of deals that you can perform with the money of other people. Private lenders will lend you their money if they think you are a good investment. A person who is a solid investment knows as much as possible about real estate investing. This will help you show private lenders that you are a good investment if they do not know about real estate investing themselves.

Real estate investing is a good way to generate a great deal of wealth. You can create income regardless of the economy. Using knowledge of real estate investing, short sales, bulk reo sales and virtual real estate you will be able to create success for yourself. Real estate investing basic knowledge will help you succeed as a real estate investor.

The recession in the U.S. economy has resulted in more foreclosures than experienced by any other generation of Americans. However, opportunistic real estate investment professionals are turning the recession into great profits with a bit of creativity.

The real estate investing strategy du jour is called ‘Bulk REO Investing‘ and is a real monster.

Consider with me, if you will, the fundamentals of the Bulk REO business.

To understand Bulk REO investing is to understand the foreclosure process.

A home owner who misses one or more mortgage payments is faced with an ever-increasing volume of threatening correspondence from their lender. The lender directs the subsequent timing of the actual foreclosure proceedings. The name for this period is ‘preforeclosure’.

The defaulted property is ultimately auctioned, thus completing the foreclosure process. If there are no buyers at the foreclosure auction, the lender regains title to the property. The property then receives the designation of being an ‘REO’ or the more formal name, ‘Real Estate Owned’.

REO properties are usually listed for sale with local real estate agents. However, REO properties are now frequently sold for far less than their ‘book value’. However, the purchase of a ‘package’ (or group) or REO properties is the trade-off for receiving such great prices.

The recession in the United States has yielded huge profits to real estate investors prepared to take advantage. Bulk REO Investors are most successful when they have a well-established source of funding for their REO packages. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Salvatore Bushemi of Dandrew Capital Partners, a New-York based hedge fund.

Buying A Foreclosure For Sale

With so many foreclosure homes for sale, the time is now to shop for a new home. When the economy hits a slump, people begin to lose their jobs. As their income is not coming so they are incapable to make their payments. When this happens, foreclosure is bound to happen. Foreclosures occurs when someone is incapable of making payments of the debt provided by the bank for which bank is liable to take the ownership of the house. This usually takes months of overdue mortgage payments to happen but by that time the family is so far behind that there’s little hope of catching up. It’s sad when it happens but when a foreclosure notice comes in, the family is forced to move. But what happens to that house when the family finally moves out? It just sits there empty. The bank wasn’t making any money on the house while the family was there and they’re certainly not making any money now. That’s why the banks are going to do everything within their power to get someone into that house; but they don’t just want anyone. They want someone in the house who can pay the bills. As the price is going to be right so it appropriate time to find a foreclosure for sale.

Shopping For Houses? Try Foreclosure For Sale

When you go house hunting, you typically will talk to a realtor who will show you pictures of homes or will tour homes with you. These are usually houses sold by the owners. But what if you went about house hunting a different way? What if you went straight to the bank to find foreclosures for sale? When you go to the bank and inquire about foreclosures for sale, you can often buy the house straight from the bank without having to deal with a realtor.

The Price is Right When You Buy Foreclosure For Sale

The best part about foreclosures for sale is that the price is going to be much lower than the original family paid. The bank just wants someone in the home. It does little good to them empty. So if you want to find a house for a price that can’t be beat, buy a foreclosure for sale. There are many to be had as the economy struggles to right itself again. It’s a sad fact that families are losing their homes left and right but that’s when someone can swoop in and claim that home for a lot less than it would normally be sold for.

If you have never been through car repossession or voluntary repossession, then we truly hope you never will. The heartache of having an debt collector knocking on your door telling you that they have to take your car is a very bad experience. Those debt collectors that were hired to repossess your car do not listen to a word you say, so it would be best if you stop car repossession before it happens to you. If you allow it to happen, then you will not only have to pay what you owe on the car, but you will also have to pay the late fee and the repossession fee and any other legal fees. This in turns can lead up to one big price that many of you may not be able to afford in the first place. Yes, the economy is down today, but this does not stop those lenders from repossessing the car if you are late on those installments. We understand this heartache and we would like to work with you one on one in order to help you.

First of all, you need to pay the amount that you owe on the car in order to bring the payment current. Generally, when a bank is up for repossessing a car, they will do so, unless you make all of the payments up to date.

Taking out a second job or a personal loan would be a great way for you to get this amount up to date. We know this sounds harsh, but having a repossessed car is even harsher.

If you are financing through a bank, then you should try to negotiate with the bank. Feel free to speak with a customer service representative at the bank and tell him or her exactly why you have been behind on those car payments in the past. They may be compassionate with you and set up a payment schedule until you catch up on your arrear payments. However, if you do not keep up with the agreed payment plan, then your car will be repossessed by the creditor.

If you have good credit to support this next method, then you should do it. What about refinancing the car loan you currently have? Speak with the bank and tell them that you would like to refinance that loan for a longer amount of time. You can also renegotiate the interest rate. This way, it will be more affordable for you each month although you will be paying longer for the lone.

You could always hide your car, but be warned that when your car is found, they will take it away, even if you are driving down the road.

Another method would be to file for bankruptcy. Of course, this should be the last method you turn to, but when you file for bankruptcy or voluntary sequestration, those creditors will not be able to get the money that you owe them. Yes, this even includes repossessed cars.

As you are fighting to stop car repossession, take note that the smartest way to do so would be to just pay the loan. If you are not able to do this, then you should follow through with the other methods that we just told you about.

It is likely that you think of a number of things when you hear the words real estate investing. Depending on how familiar you are with real estate investing already, you might think of real estate portfolios and real estate retirement plans, or you might focus on short sales, bulk reo investing and virtual real estate investing. You probably also wonder how these things play out in real estate investors’ life in the current economy.

There is a lot of information out there on real estate investing. Knowing the basics of real estate investing education is a good way to get the most out of every lesson. Whether you are interested in short sales, bulk reo sales, virtual real estate or just improving your abilities as a real estate investor, you need to know some real estate investing basics in order to succeed. Here are three real estate investing basics that even some experts do not really know:

1. You always will get a positive result from investing in real estate investing education. In any real estate deal, there will be thousands of dollars in potential wealth. Understanding how to get that wealth will be the key to your success. Knowing more about real estate betters your odds of success when you do a real estate deal. Small investments yield big results when you invest in learning and then implement what you learn.

2. You have the ability to succeed in real estate investing in any economy. Many people are under the misconception that success is possible in real estate only when the economy is good. You should remember that a bad economic situation is not usually bad for real estate investors. You can often buy properties at deep discounts. You could also locate deals that would not exist in a booming economy. In fact, real estate investing can turn the tide for a poor economy. When an economy is less than thriving, short sales, bulk reo sales and virtual real estate can prosper. You will be able to save yourself and others from serious financial difficulties if you know how to do these deals.

3. You do not need lots of your own cash to be a successful real estate investor. You can be a success in real estate investing no matter how much money you have on your own. There are many deals that will let you use other people’s money to do them. If you look like a good investment a private lender may let you use their money. A good investment will know as much as they can about real estate investing. This will help you represent yourself as a good investment to private lenders who do not know how to make money in real estate investing.

Real estate investing is a great way to create a good amount of wealth. You can create a good income no matter what the state of the economy. You can create your own success using your knowledge of short sales, real estate investing, bulk reo sales and virtual real estate. Knowing real estate investing basics will help you succeed as a real estate investor.

Are You Having Sleepless Nights Because You Just Plain Refused To work for Yourself?

Your body and mind is numb and your feet hurt because you worked hard all day and you have come to a place you call home at night, only to discover that you will not be getting that sleep you really deserve after all. You will toss and turn again tonight because on the table in the next room, there is pile of bills.

Sometimes the collection agents know ways to trick you to pick the phone. Need i say more?

You will toss and turn because you think its about the immediate debt, but believe me, the mind is way smarter than you want to give it credit.

Deep rooted issues that nag you secretely and subtle.

You are no more indispensable at your job place. Most of the time , you will have to clown your way and suck up more in order to stay in the loop.

Your better half does not think you are in control anymore and now and then goes or stays away for a while with other folk for you to sort yourself out. It’s already 3 a.m. and your body finally gives up and you go to sleep but then off goes the faithful alarm always on schedule to wake his master up to rise up and shine.

Yep,its time to wake up.  And you will have to be on the road in 15 minutes flat else you will hit the traffic, and you remember what happened last time when you were late to pick your son up for school.

OK. It’s time for you to go to work. Day two comes and you’re off again to the usual rat race.You don’t know how to wiggle yourself out of this vicous cycle. How are you going to pay all of these bills if all you were trying to do was jusi live like a normal human being. Normally you are great worker, so you are starting to wonder how you got yourself in this mess What can you do to avoid total disaster? Who can you to turn to?

Does this sound like you? Are you a Christian having sleepless nights because of your finances? Here are the top five reasons I have found why people get into debt:

1) We are not taking the time neede to really understand in detail the people who’s lives we tend to emulate. 2) We refuse to accept the truth about our current Health Care System. If you don’t have money in America, you can die from lack of  appropriate care.~ We have heard of people paying 0 grand a month to have private doctors and they still wind up Dead.3) The only way you can have a three month vacation is when you have your own business. And three months vacaton is what you really need to wind down  4) Divorcing and the other party charged up cards in the process splitting up 5) Impulse Shopping?Well that is only me.

I too was a victim. Debt is like a social virus, it spreads so fast and is very hard to contain. My husband equally had financial woes, his was still on this list. Being in debt has a way of having a hold on you and causes you not to think clearly. People in debt tend to operate out of fear – for example they ignore phone calls because it might be a collection agency on the other end. How many calls have they missed? Or perhaps, they write a check in the hopes that it will clear the bank; knowing full well they spent the money on luxuries and other needless excesses that have caused the bank account to have insufficient funds.

If any of this sounds like you or someone you know, assure them they can get out of debt without filing bankruptcy. Personal Pride is a very important issue for certain people who need help..it is unbelievable how that afflicts their decisions when it comes to seeking handouts.

I refuse to accept the current nonsense about being financial solvent so long as you obtain a degree so long as you dont work for yourself, you are not living the American dream. With the economy, you are a rich car magnate today and tommorow you are obsolete. At a certain time, it was the automobile industry,then came the computers and now its going to be the Green Dream Peddlers. The Gold Rush demon has ways of transforming and renewing its image but it is the same story. There are going to be people well placed to profit personally, but making it has nothing to do with saving it.

In a Gold rush, there are those who dig and those who provide services to the digger’s, buyers,and whoever happens to be there.

Why should someone else help you get out of debt that you created?

One of the concerns of most couples is if counseling can be helpful to their marriage. May it be about family problems.Or with personal crisis.Or in relationship problems.After all does anybody want their personal problems be revealed in public.  On top of that you have to pay for it too.

We are going to look at how counseling can help relationships in this article.  Best part of all this is coming from case study experiences in real life practice as a marriage counselor in San Diego services.Hopefully these case studies will make you believe that marriage counseling can help you.

But marriage counseling is not just what I work on.Couples that are not married also undergo counseling to seek help in their relationship. With that my couples counseling San Diego practice can also help them as well.

So if you think it can help you and your partner both of you must agree first on some things.First thing both of you should agree on is that both of you should want this counseling to work. If one person doesn’t really want this to work no counseling will help.But it can really work if you have two persons who really want this to work.

Second thing that is required is for both of you to be open.  A good family therapist San Diego will be able to show both parties how to communicate better. The counselor will be able to provide ways on how couples can do this.Because for you to resolve your differences you would have to be able to communicate.Counseling is of no help as long as the couple is not open to learning to communicate.

Those things will be the things that you need to look at when you are thinking of undergoing a counseling.  If you can meet that criteria, counseling may be for the both of you.But there would be no kind of counseling can help you if you can’t meet the criteria.