SlideShare una empresa de Scribd logo
1 de 29
Buying Puts on SAP
                                   By
    www.Options-Trading-Education.com
Is the current flurry of
      activity with traders
 buying puts on SAP part
        of the greater EU
economic picture or does
   it just have to do with
  issues internal to SAP.
       www.Options-Trading-Education.com
SAP ADR shares are
 currently lower and
 have been trending
downward for about
        two months.
   www.Options-Trading-Education.com
The put to call ratio for
  January 2012 puts is
   three to one for the
German software giant.
       www.Options-Trading-Education.com
SAP AG is the leader
         worldwide in
developing application
             software.
     www.Options-Trading-Education.com
It sells as American
Depository Receipts in
               the USA.
     www.Options-Trading-Education.com
SAP is current trading
at just over $50 a share
     but the three to one
      put to call ratio is a
    strong indicator that
       traders expect the
        stock price to fall.
        www.Options-Trading-Education.com
Because SAP is a global
  company buying puts
     on SAP is a bit like
betting on a worldwide
   economic downturn.
       www.Options-Trading-Education.com
Because it is a
   European company
   buying puts on SAP
falls into the category
 of trading options on
   Euro Zone stocks in
                general.
     www.Options-Trading-Education.com
The economic picture in
         the European
Community is not clear.
      www.Options-Trading-Education.com
The southern tier
nations have come near
   going into default on
  their sovereign debts.
      www.Options-Trading-Education.com
The risk of a breakup of
      the EU has driven
 stocks and the Euro up
   and down for the last
        couple of years.
      www.Options-Trading-Education.com
Now that the EU
ministers have agreed
   to closer economic
integration there may
 be light at the end of
            the tunnel.
     www.Options-Trading-Education.com
However, no one
expects quick fix and a
  renewed recession in
 Europe could lead to a
      global economic
            downturn.
      www.Options-Trading-Education.com
Folks who are buying
   puts on SAP may be
 looking exclusively at
Europe or at the bigger
               picture.
      www.Options-Trading-Education.com
However, a recession
will likely hit SAP sales
         and stock price.
      www.Options-Trading-Education.com
The stock has traded
    between $50 and $68 a
 share in the last year and
    is at the bottom of that
  range and heading lower
if the folks buying puts on
            SAP are correct.
        www.Options-Trading-Education.com
To a degree some
traders may be simply
     hedging risk with
              options.
     www.Options-Trading-Education.com
Anyone who bought the
  stock nearly a decade
   ago bought at below
           $20 a share.
      www.Options-Trading-Education.com
They may still expect
the stock to rise but do
not want to get caught
  in a short term fall in
            stock price.
      www.Options-Trading-Education.com
Although these may not
     be a good times for
    owning stocks these
may well be good times
     for options trading.
       www.Options-Trading-Education.com
Buying puts or calls on
      a stock, provides
  investment leverage
for the options trader.
     www.Options-Trading-Education.com
It also allows the
         trader to hedge
   investment risk. The
     buyer of an options
    contract is under no
obligation to buy or sell
  the stock in question.
       www.Options-Trading-Education.com
However, if the price of
   the equity moves as
  expected the options
  trader can do so and
        profit thereby.
      www.Options-Trading-Education.com
The price of an options
contract is significantly
   less than that of the
      stock in question.
      www.Options-Trading-Education.com
In chaotic times such
   as these traders take
   advantage of options
trading in order to earn
   profits while limiting
                    risk.
      www.Options-Trading-Education.com
Those buying puts on
SAP expect the stock
 price to fall and will
      profit if it does.
     www.Options-Trading-Education.com
However, they have
     limited their risk in
  case of a rise in stock
price to the price of the
        options contract.
       www.Options-Trading-Education.com
For more insights and
    useful information
regarding options and
  options trading, visit
www.Options-Trading-
       Education.com.

Más contenido relacionado

Similar a Buying Puts on SAP

Investing in Value Stocks
Investing in Value StocksInvesting in Value Stocks
Investing in Value Stocks
InvestingTips
 
What Is Price To Earnings Or Pe Ratio?
What Is Price To Earnings Or Pe Ratio?What Is Price To Earnings Or Pe Ratio?
What Is Price To Earnings Or Pe Ratio?
Peter Lim
 
Emerging Market fund proposal
Emerging Market fund proposalEmerging Market fund proposal
Emerging Market fund proposal
Rodders78
 
What is the otc market how to trade to make good profits
What is the otc market   how to trade to make good profitsWhat is the otc market   how to trade to make good profits
What is the otc market how to trade to make good profits
HuangLG88
 
Attractive Stocks in Weak Markets
Attractive Stocks in Weak MarketsAttractive Stocks in Weak Markets
Attractive Stocks in Weak Markets
InvestingTips
 
What is Intrinsic Stock Value
What is Intrinsic Stock ValueWhat is Intrinsic Stock Value
What is Intrinsic Stock Value
InvestingTips
 

Similar a Buying Puts on SAP (20)

Profitable Futures Markets
Profitable Futures MarketsProfitable Futures Markets
Profitable Futures Markets
 
Investing in Value Stocks
Investing in Value StocksInvesting in Value Stocks
Investing in Value Stocks
 
When Should Investors Trade Options?
When Should Investors Trade Options?When Should Investors Trade Options?
When Should Investors Trade Options?
 
Secrets to Smart trading with Binary.com
Secrets to Smart trading with Binary.comSecrets to Smart trading with Binary.com
Secrets to Smart trading with Binary.com
 
What Is Price To Earnings Or Pe Ratio?
What Is Price To Earnings Or Pe Ratio?What Is Price To Earnings Or Pe Ratio?
What Is Price To Earnings Or Pe Ratio?
 
Emerging Market fund proposal
Emerging Market fund proposalEmerging Market fund proposal
Emerging Market fund proposal
 
Katalyst wealth a guide to grow your wealth by 190 times
Katalyst wealth   a guide to grow your wealth by 190 timesKatalyst wealth   a guide to grow your wealth by 190 times
Katalyst wealth a guide to grow your wealth by 190 times
 
Stock Market Greed N Fear
Stock Market   Greed N Fear Stock Market   Greed N Fear
Stock Market Greed N Fear
 
What is the otc market how to trade to make good profits
What is the otc market   how to trade to make good profitsWhat is the otc market   how to trade to make good profits
What is the otc market how to trade to make good profits
 
Careers In Finance
Careers In FinanceCareers In Finance
Careers In Finance
 
Seeking Alpha Stock Analysis Guide
Seeking Alpha Stock Analysis GuideSeeking Alpha Stock Analysis Guide
Seeking Alpha Stock Analysis Guide
 
(280) the dias focused growth portfolio – under the hood
(280)   the dias focused growth portfolio – under the hood(280)   the dias focused growth portfolio – under the hood
(280) the dias focused growth portfolio – under the hood
 
Predicting the Next Retail Investment Frenzy
Predicting the Next Retail Investment FrenzyPredicting the Next Retail Investment Frenzy
Predicting the Next Retail Investment Frenzy
 
High-Frequency Trading Report
High-Frequency Trading ReportHigh-Frequency Trading Report
High-Frequency Trading Report
 
Attractive Stocks in Weak Markets
Attractive Stocks in Weak MarketsAttractive Stocks in Weak Markets
Attractive Stocks in Weak Markets
 
Vol graph to generate best returns 5.0
Vol graph to generate best returns 5.0Vol graph to generate best returns 5.0
Vol graph to generate best returns 5.0
 
Make money in_stock_market_barcamp_windows
Make money in_stock_market_barcamp_windowsMake money in_stock_market_barcamp_windows
Make money in_stock_market_barcamp_windows
 
Trade binary options
Trade binary optionsTrade binary options
Trade binary options
 
How to Make Safe Investments
How to Make Safe InvestmentsHow to Make Safe Investments
How to Make Safe Investments
 
What is Intrinsic Stock Value
What is Intrinsic Stock ValueWhat is Intrinsic Stock Value
What is Intrinsic Stock Value
 

Más de InvestingTips

Más de InvestingTips (20)

When to Buy and When to Sell Bitcoin
When to Buy and When to Sell BitcoinWhen to Buy and When to Sell Bitcoin
When to Buy and When to Sell Bitcoin
 
Dangers of Investment Leverage
Dangers of Investment LeverageDangers of Investment Leverage
Dangers of Investment Leverage
 
Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?
 
Will Northrup Grumman Go Into Commercial Aviation?
Will Northrup Grumman Go Into Commercial Aviation?Will Northrup Grumman Go Into Commercial Aviation?
Will Northrup Grumman Go Into Commercial Aviation?
 
How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?
 
How CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto BusinessHow CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto Business
 
Blockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterBlockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto Winter
 
Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?
 
Bitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentBitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term Investment
 
Bitcoin Versus NFTs
Bitcoin Versus NFTsBitcoin Versus NFTs
Bitcoin Versus NFTs
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?
 
Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?
 
Obligations of a Crypto Business
Obligations of a Crypto BusinessObligations of a Crypto Business
Obligations of a Crypto Business
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?
 
Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?
 
Apple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureApple as a Model for Crypto’s Future
Apple as a Model for Crypto’s Future
 
Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?
 

Último

Powerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost Lover
Powerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost LoverPowerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost Lover
Powerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost Lover
PsychicRuben LoveSpells
 
{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...
{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...
{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...
hyt3577
 
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
Faga1939
 
₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...
₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...
₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...
Diya Sharma
 

Último (20)

BDSM⚡Call Girls in Greater Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Greater Noida Escorts >༒8448380779 Escort ServiceBDSM⚡Call Girls in Greater Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Greater Noida Escorts >༒8448380779 Escort Service
 
Julius Randle's Injury Status: Surgery Not Off the Table
Julius Randle's Injury Status: Surgery Not Off the TableJulius Randle's Injury Status: Surgery Not Off the Table
Julius Randle's Injury Status: Surgery Not Off the Table
 
WhatsApp 📞 8448380779 ✅Call Girls In Chaura Sector 22 ( Noida)
WhatsApp 📞 8448380779 ✅Call Girls In Chaura Sector 22 ( Noida)WhatsApp 📞 8448380779 ✅Call Girls In Chaura Sector 22 ( Noida)
WhatsApp 📞 8448380779 ✅Call Girls In Chaura Sector 22 ( Noida)
 
BDSM⚡Call Girls in Indirapuram Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Indirapuram Escorts >༒8448380779 Escort ServiceBDSM⚡Call Girls in Indirapuram Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Indirapuram Escorts >༒8448380779 Escort Service
 
Gujarat-SEBCs.pdf pfpkoopapriorjfperjreie
Gujarat-SEBCs.pdf pfpkoopapriorjfperjreieGujarat-SEBCs.pdf pfpkoopapriorjfperjreie
Gujarat-SEBCs.pdf pfpkoopapriorjfperjreie
 
Transformative Leadership: N Chandrababu Naidu and TDP's Vision for Innovatio...
Transformative Leadership: N Chandrababu Naidu and TDP's Vision for Innovatio...Transformative Leadership: N Chandrababu Naidu and TDP's Vision for Innovatio...
Transformative Leadership: N Chandrababu Naidu and TDP's Vision for Innovatio...
 
AI as Research Assistant: Upscaling Content Analysis to Identify Patterns of ...
AI as Research Assistant: Upscaling Content Analysis to Identify Patterns of ...AI as Research Assistant: Upscaling Content Analysis to Identify Patterns of ...
AI as Research Assistant: Upscaling Content Analysis to Identify Patterns of ...
 
Powerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost Lover
Powerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost LoverPowerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost Lover
Powerful Love Spells in Phoenix, AZ (310) 882-6330 Bring Back Lost Lover
 
{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...
{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...
{Qatar{^🚀^(+971558539980**}})Abortion Pills for Sale in Dubai. .abu dhabi, sh...
 
America Is the Target; Israel Is the Front Line _ Andy Blumenthal _ The Blogs...
America Is the Target; Israel Is the Front Line _ Andy Blumenthal _ The Blogs...America Is the Target; Israel Is the Front Line _ Andy Blumenthal _ The Blogs...
America Is the Target; Israel Is the Front Line _ Andy Blumenthal _ The Blogs...
 
1971 war india pakistan bangladesh liberation.ppt
1971 war india pakistan bangladesh liberation.ppt1971 war india pakistan bangladesh liberation.ppt
1971 war india pakistan bangladesh liberation.ppt
 
Defensa de JOH insiste que testimonio de analista de la DEA es falso y solici...
Defensa de JOH insiste que testimonio de analista de la DEA es falso y solici...Defensa de JOH insiste que testimonio de analista de la DEA es falso y solici...
Defensa de JOH insiste que testimonio de analista de la DEA es falso y solici...
 
BDSM⚡Call Girls in Sector 143 Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Sector 143 Noida Escorts >༒8448380779 Escort ServiceBDSM⚡Call Girls in Sector 143 Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Sector 143 Noida Escorts >༒8448380779 Escort Service
 
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
 
Enjoy Night⚡Call Girls Iffco Chowk Gurgaon >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Iffco Chowk Gurgaon >༒8448380779 Escort ServiceEnjoy Night⚡Call Girls Iffco Chowk Gurgaon >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Iffco Chowk Gurgaon >༒8448380779 Escort Service
 
China's soft power in 21st century .pptx
China's soft power in 21st century   .pptxChina's soft power in 21st century   .pptx
China's soft power in 21st century .pptx
 
₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...
₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...
₹5.5k {Cash Payment} Independent Greater Noida Call Girls In [Delhi INAYA] 🔝|...
 
Enjoy Night⚡Call Girls Rajokri Delhi >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Rajokri Delhi >༒8448380779 Escort ServiceEnjoy Night⚡Call Girls Rajokri Delhi >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Rajokri Delhi >༒8448380779 Escort Service
 
Enjoy Night ≽ 8448380779 ≼ Call Girls In Gurgaon Sector 47 (Gurgaon)
Enjoy Night ≽ 8448380779 ≼ Call Girls In Gurgaon Sector 47 (Gurgaon)Enjoy Night ≽ 8448380779 ≼ Call Girls In Gurgaon Sector 47 (Gurgaon)
Enjoy Night ≽ 8448380779 ≼ Call Girls In Gurgaon Sector 47 (Gurgaon)
 
Nurturing Families, Empowering Lives: TDP's Vision for Family Welfare in Andh...
Nurturing Families, Empowering Lives: TDP's Vision for Family Welfare in Andh...Nurturing Families, Empowering Lives: TDP's Vision for Family Welfare in Andh...
Nurturing Families, Empowering Lives: TDP's Vision for Family Welfare in Andh...
 

Buying Puts on SAP

  • 1. Buying Puts on SAP By www.Options-Trading-Education.com
  • 2. Is the current flurry of activity with traders buying puts on SAP part of the greater EU economic picture or does it just have to do with issues internal to SAP. www.Options-Trading-Education.com
  • 3. SAP ADR shares are currently lower and have been trending downward for about two months. www.Options-Trading-Education.com
  • 4. The put to call ratio for January 2012 puts is three to one for the German software giant. www.Options-Trading-Education.com
  • 5. SAP AG is the leader worldwide in developing application software. www.Options-Trading-Education.com
  • 6. It sells as American Depository Receipts in the USA. www.Options-Trading-Education.com
  • 7. SAP is current trading at just over $50 a share but the three to one put to call ratio is a strong indicator that traders expect the stock price to fall. www.Options-Trading-Education.com
  • 8. Because SAP is a global company buying puts on SAP is a bit like betting on a worldwide economic downturn. www.Options-Trading-Education.com
  • 9. Because it is a European company buying puts on SAP falls into the category of trading options on Euro Zone stocks in general. www.Options-Trading-Education.com
  • 10. The economic picture in the European Community is not clear. www.Options-Trading-Education.com
  • 11. The southern tier nations have come near going into default on their sovereign debts. www.Options-Trading-Education.com
  • 12. The risk of a breakup of the EU has driven stocks and the Euro up and down for the last couple of years. www.Options-Trading-Education.com
  • 13. Now that the EU ministers have agreed to closer economic integration there may be light at the end of the tunnel. www.Options-Trading-Education.com
  • 14. However, no one expects quick fix and a renewed recession in Europe could lead to a global economic downturn. www.Options-Trading-Education.com
  • 15. Folks who are buying puts on SAP may be looking exclusively at Europe or at the bigger picture. www.Options-Trading-Education.com
  • 16. However, a recession will likely hit SAP sales and stock price. www.Options-Trading-Education.com
  • 17. The stock has traded between $50 and $68 a share in the last year and is at the bottom of that range and heading lower if the folks buying puts on SAP are correct. www.Options-Trading-Education.com
  • 18. To a degree some traders may be simply hedging risk with options. www.Options-Trading-Education.com
  • 19. Anyone who bought the stock nearly a decade ago bought at below $20 a share. www.Options-Trading-Education.com
  • 20. They may still expect the stock to rise but do not want to get caught in a short term fall in stock price. www.Options-Trading-Education.com
  • 21. Although these may not be a good times for owning stocks these may well be good times for options trading. www.Options-Trading-Education.com
  • 22. Buying puts or calls on a stock, provides investment leverage for the options trader. www.Options-Trading-Education.com
  • 23. It also allows the trader to hedge investment risk. The buyer of an options contract is under no obligation to buy or sell the stock in question. www.Options-Trading-Education.com
  • 24. However, if the price of the equity moves as expected the options trader can do so and profit thereby. www.Options-Trading-Education.com
  • 25. The price of an options contract is significantly less than that of the stock in question. www.Options-Trading-Education.com
  • 26. In chaotic times such as these traders take advantage of options trading in order to earn profits while limiting risk. www.Options-Trading-Education.com
  • 27. Those buying puts on SAP expect the stock price to fall and will profit if it does. www.Options-Trading-Education.com
  • 28. However, they have limited their risk in case of a rise in stock price to the price of the options contract. www.Options-Trading-Education.com
  • 29. For more insights and useful information regarding options and options trading, visit www.Options-Trading- Education.com.