Beta

Byivtrades

This is a measure of a stock’s volatility relative to the S&P 500 Index. High Beta stocks have high volatility.

Stocks that have a beta reading of 1.00 or greater tend to move faster or are more volatile than the S&P index.

And stocks that have a beta less than 1.00 tend to move slower or are less volatile than the S&P. if the beta is equal to 1.00 it means the stock tends to track the S&P in terms of volatility.

You cab find the Beta on just about every trading platform but you can also easily find it on Finviz as highlighted in red.

Similar Posts

  • Collar Buying

    Byivtrades

    This is when you own shares in a particular stock and then you sell Calls against it and then buy Puts. You would use this strategy when you think that the stock rice is a little overdone and you are expecting some downside. This has limited risk due to the long put option, but also…

  • Time Value Of Options

    Byivtrades

    The time Value of Options refers to the value of the options contract beyond its intrinsic value. Time value is equal to the extrinsic value of the options contract. Out-of-the-money options consist only of time value. The value of in-the-money options can include both intrinsic value and time value. See also In The Money Options,…

  • Debit Spread

    Byivtrades

    This is basically any spread where the premium paid from buying part of the spread is greater than the premium received for the other part of the spread. For example if you bought the GOOGL 95.00 Calls for 8.00 and sold the 100.00 Calls for 5.50 the debit would be 2.50 See also: Credit Spread,…

  • Box Spread

    Byivtrades

    A Box Spread is simply a combination of two vertical spreads. These spreads are used by professional Options traders who are trying to take advantage of a situation where the cost of the spreads (both verticals) is less than what the verticals would be worth when they expire. They consider this to be a type…

Leave a Reply