Synthetic Position
What is Synthetic Position? A synthetic position is a trading option used to simulate the features of another comparable position. More specifically, a synthetic position is created to simulate a similar reward or risk profile as that of a comparable position. In the field of options trading, a synthetic position is developed in two ways....
Breakup Value
What is Breakup Value? Breakup value is the value of a company if its components were to be sold or spun off and operated independently. The breakup value is obtained by taking the total assets of each component and deducting the total liabilities. If the current breakup value exceeds the current market value of the...
LEAPS
What are LEAPS? LEAPS (Long-Term Equity Anticipation Security) are options for terms that are longer than those of the most common options on equities and indices. Around 2,500 equities and 20 indices make LEAPS available in two forms: calls and puts. Traditional Options Traditional options typically come with three expiration cycles: Three months Six months...
Financial Portfolio Template
Investment Portfolio Beta Template This portfolio beta template will help you calculate the weighted average beta of all of the stocks in your investment portfolio. Beta (β), as a measure of volatility relative to the market, is an important financial metric to consider to evaluate how an investor’s portfolio responds to the market. Here is...
Modified Duration
What is Modified Duration? Modified duration, a formula commonly used in bond valuations, expresses the change in the value of a security due to a change in interest rates. In other words, it illustrates the effect of a 100-basis point (1%) change in interest rates on the price of a bond. Modified duration illustrates the...
