spot stocks with options which can make a big move. This periodical reviews every stock that has options complete with pertinent charts and graphs.Worth its weight in gold many times over once you understand the risks and rewards associated with options strategies, and techniques used to maximize gainand minimize risk.Online Investing: An excellent magazine specifically focusing on the needs of theonline investor. This monthly magazine offers the latest reviews of financial websites as well as snappy news and insightful trading articles. Great writers and uniqueperspectives keep this relative newcomer a definite up-and-comer.Technical Analysis of Stocks & Commodities: Good cross section of stock andcommodity information. More technical than other periodicals, but a very goodsource of interesting trading ideas designed to foster trader success by offering information on technical trading strategies, charting patterns, indicators, and computerized trading methods through well-researched feature articles.Wired: Well-known for its cutting edge style and lively commentary, Wired magazine provides plenty of interesting news, articles, commentary, and marketanalysis with an inclination for high-technology subjects and online dot-comcompanies.Worth: This magazine offers a variety of investment articles, feature stories, andarchived stories from previous editions. There is also an online link to the complete Peter Lynch archives, a section for investor resources, and Investing 101for beginners.
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Useful Web SitesFree information about stocks and options on the Internet abounds. Please keep inmind that many new internet web sites are created daily, and the information on individual sites is dynamic and ever changing. This is just a small selection of sitesthat we have found to be well-designed, user-friendly, and useful.EducationFinal Bellwww.sandbox.net/finalbell/pub-doc/home.htmlCNN Financial Network hosts the Final Bell, which is a place you can join freestock trading simulations, master the basics of online investing, and compete forgreat prizes.Motley Foolwww.fool.comThe Motley Fool site was created to educate, amuse, and enrich. This popular andentertaining site has a vast amount of information including quotes, charts, financials, education, portfolios, news, and ideas.Options Industry Councilwww.optionscentral.comThe Options Industry Council (OIC) is the educational arm of several exchanges,including the American Stock Exchange (AMEX), Chicago Board Options Exchange (CBOE), Pacific Stock Exchange (PSE), the Philadelphia Stock Exchange(PHLX), and the Options Clearing Corporation (OCC). The site offers free educational material to help you learn about trading options.Stock Trackwww.stocktrak.comStock Track provides portfolio simulations featuring stocks, options, futures, bonds,and more. Over 10,000 college students use this terrific educational site each semester in their finance and investment courses. Stock Track is now available to anyone, allowing you to manage a fake brokerage account of $100,000 in order to teststrategies, place trades, and learn about the financial markets.Virtual Stock Exchangewww.virtualstockexchange.comThe Virtual Stock Exchange is a simulation web site utilized by over 65 collegesand investment clubs, managing portfolios through free simulations. Their investment guide contains a glossary, online resources, and market strategies.Charts and QuotesBigChartswww.bigcharts.comBigcharts is sure to become one of your favorite sites with intraday charts, historicalquotes, and quotes on over 34,000 stocks, mutual funds, and indices. Great info onthe big movers and losers in the main markets, momentum charts, and other goodies.
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BMIwww.bmiquotes.comBonneville Market Information (BMI) has free 20-minute delayed quotes, a link toCBS MarketWatch, and end-of-day global market information, including exchangerates and American depositary receipts (ADR) prices. Real-time quotes are available for a fee.ClearStationwww.clearstation.comThis site focuses on technical information including customized charts, graphs, andcompany profiles. Enjoy custom portfolios, quotes, charts, message boards, anddaily e-mail alerts plus recommendations that are actually worthwhile.CyberInvestwww.cyberinvest.comCyberInvest is an excellent guide for the focusing on investor education, portfoliotracking, market monitors, Zacks research, global investing, portfolio tracking, anda round-up of the coolest tools on the Web.DBC Onlinewww.dbc.comA comprehensive site that includes delayed and real-time quote services, news,movers and shakers, charts, portfolios, and alerts. Many trading software programs are compatible with DBC (also known as Signal) to run their analysissystems.Financial Webwww.financialweb.comThis extensive site is one of our favorites for reviewing fundamental data and historical prices of options and stocks, and for researching mutual funds.PC Quotewww.pcquote.comPC Quote has delayed quotes and access to real-time quotes on stocks, options andfutures, as well as a multitude of insightful articles and pertinent data.Quicken.comwww.quicken.comThe Quicken site has quotes, advanced charting, portfolio information, news, analysis, profiles, SEC filings, and reports in addition to its turbo tax products.Quote.comwww.quote.comOne of the best sites on the Net, Quote.com offers a full web page of useful information, including delayed and real-time quotes, charts, earnings estimates and reports, top business stories, NYSE most active gainers and losers, and a marketguide with in-depth information on individual companies. You can also register forhourly updates; dynamic quote service, and timely news feeds.
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StockMasterwww.stockmaster.comStockMaster is another excellent site with quotes and clear daily price charts withseparate volume charts. Check out their investor sentiment surveys.StockToolswww.stocktools.comThe StockTools site has delayed quotes on all the major U.S. and Canadian exchanges. Nice features include a wide variety of industry groupings for selectingquotes. Customizable graphs, and extensive historical quotes are also available.Timely.comwww.timely.comTimely.com is a friendly little site with 15 to 20-minute delayed quotes, charts, andindicators on over 17,000 different securities. Lists most actives, biggest gainersand losers also.Yahoo! Financequote.yahoo.comThe Yahoo financial site has quotes, financial news, features, a reference section withcalendars, the latest market news, and a portfolio feature to track your favorite stocks.News SourcesBloombergwww.bloomberg.comBloomberg’s site has a staggering array of financial information including headlines,market updates, and equity indexes. Currency calculators and cross-currency rates areuseful bonuses. Real audio sound bites are available for up-to-the-minute updates.Business Weekwww.businessweek.comBusiness Week online has daily briefings, quotes, and portfolio information. Manyinteresting and well-written articles make this a worthwhile site, while the banking,technology, and education centers are interesting. The searchable archive dates backto January 1991.CBS MarketWatchwww.marketwatch.comCBS MarketWatch is sure to be on everyone’s bookmark list, with comprehensivecoverage of news, headlines, and market data. Delayed quotes are supplied by DBC.CNBCwww.cnbc.comThe CNBC television news channel is the leader in business news. The CNBC sitehas programming information for CNBC in the U.S., Europe, and Asia. Biographiesfor the CNBC staff are also online. Extensive executive and job search Web listingsand phone numbers are available.
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CNNfncnnfn.cnn.comThe CNN television news channel has successfully spun off their online FinancialNews site, with the hot stories of the day, market updates, quotes, resources, andbriefings.Dow Joneswww.dowjones.comThe Dow Jones site has global market updates, economic indicators, the quotes, andthe newswire. Access to other business publications is also available.Dun & Bradstreetwww.dnb.comDun & Bradstreet specializes in press releases and company profiles, focusing onnews, views, and trends.The Economistwww.economist.comThe Economist is the international journal of news, ideas, and opinions. Thoughtprovoking analysis and articles abound in the current issue, as well as access toarchived editions.Financial Timeswww.ft.comThe Financial Times’ online newspaper requires free registration to access headlines and financial information. Free search of archived articles is available.Forbeswww.forbes.comForbes Digital Toolbox is an intriguing site with many of the Forbes lists, interesting commentary, and delayed quotes.Investor’s Business Dailywww.investors.comThe IBD site has incorporated many topical daily news articles from sections suchas Inside Today, Front Page, Computers & Tech, the Economy, the Markets, andVital Signs.Kiplingerwww.kiplinger.comKiplinger online is an excellent source of business forecasts and personal financialadvice. The PAWWS Financial Network provides 20-minute delayed quotes.MoneyNetwww.moneynet.comReuters MoneyNet has market briefs, indexes updates, the market snapshot, business news, company news, quotes, and top stories.Moody’swww.moodys.comMoody’s Investors Service is the leading provider of credit ratings, research, and financial information to the capital markets.
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Nasdaq Traderwww.nasdaqtrader.comThe Nasdaq Trader has trading and market data services, volume reports on shares,lists of share volume leaders, trading halts, and access to Nasdaq news.Reuterswww.reuters.comReuters news service has an impressive array of financial information; especiallyuseful are the world market indices and information on the foreign exchange(ForEx) markets.Standard & Poor’swww.stockinfo.standardpoor.comThe Standard & Poor’s site contains interesting, updated headlines and market commentary, and a wealth of information on the S&P 500.Technical Analysis of Stocks and Commoditieswww.traders.comThe online site of Technical Analysis of Stocks and Commodities magazine hasmonthly featured articles and excellent educational information for the novicetrader. A wide variety of links and resources make this a useful site.Wall Street Journalwww.wsj.comWall Street Journal Interactive Edition requires a small fee for online subscription.There are some interesting free features such as top business news in Spanish andPortuguese, annual reports from selected companies, the Small Business Suite, andShareholder Scorecard. There is also an updated job and career search section withtechnical, professional, and management positions listed.Worthwww.worth.comWorth Online has a variety of stories and archived stories from previous editions.Check out the complete Peter Lynch archives, the investor resource section, and Investing 101 for beginners.Zacks Investment Researchwww.zacks.comZacks Investment Research site has a nice variety of research, emerging stock pickswith potential for explosive growth, analysis, quotes, and balance sheets. It also hasa subscription service that delivers news and quotes regarding your personal portfolio picks directly to your desktop.Search EnginesHotBotwww.hotbot.comHotBot is a superb search engine with fast access to business and financial information.
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Infoseekwww.infoseek.comInfoseek has both business and personal finance sections, with quotes, charts, market research, DRIPs, shareholder reports, and a section on stock market basics.They have an excellent free subscription service that delivers market informationdirectly to your desktop.Lycoswww.lycos.com/moneyThe Lycos site is an excellent source for stock and other financial information. Theyhave access to quotes, headlines, stock alerts, and a link for the top 10 investment sites.Yahoo!www.yahoo.com/businessThe Yahoo! site for business and the economy has a wealth of information from business headlines and indexes to economic indicators and the international economy.Informative SitesBriefing.comwww.briefing.comThe Briefing.com site has live market commentary, stock analysis, quotes andcharts, sector ratings, and an economic calendar. Other premium services areavailable.COOPwww.coop-options.comThe Committee on Options Proposals is comprised of respected options industryprofessionals and marketing personnel from 40 stock exchange member firms, thefour options exchanges, and the OCC.Daytraderswww.daytraders.comThis site is a daytrader’s paradise, full of news and resources. Delayed quotes aresupplied by Quote.com. The trading strategies section has some wonderful commonsense information for all traders.Direct Stock Marketwww.dsm.comDirect Stock Market provides investors, entrepreneurs, and securities industry professionals with current, complete, and immediate information about public and private offerings.Economagicwww.economagic.comOne of the most comprehensive free economic sites on the Net with access to morethan 100,000 core U.S. macroeconomic documents and government reports. A mustfor any broad market analyst trying to keep track of government reports and economic events.
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EDGAR-Onlinewww.edgar-online.comThis first-rate site is truly a valuable financial resource. It allows you to accessEDGAR filings using an electronic data-gathering analysis retrieval tool (now,that’s impressive) to locate the SEC filings that interest you. Check out the exclusive drill-down tools, “IPO Express” feature, and insider trading updates. Programan alert to let you know when a company you are watching files a new document.Although this is a subscription-based site, they do offer a few free services including custom portfolios.FINwebwww.finweb.comFINWeb is a highly concentrated financial economics web site dedicated to listing internet resources providing substantive information concerning economicsand finance-related topics. Sections include Electronic Publishing (Journals),Working Papers, Databases and Research Tools, and of course extensive links.Very highbrow—check out the jokes about economists, too.Individual Investorwww.individualinvestor.comThe Individual Investor online site has access to quotes, strategies, the Magic 25,hot stocks, analysis, portfolio and mutual fund information.InfoBeatwww.infobeat.comInfoBeat is an easy-to-use, one-stop shopping site for getting information deliveredright to your PC. Just click on Finance to set up portfolios of stocks and receivedaily e-mail messages containing closing prices and pertinent news. Click on Selectand then Business and Finance to browse their extensive selection of e-mailnewsletters and columnists from leading publishers that you can receive free.Info Spacequotes.infospace.comInfo Space has access to 50 real-time stock quotes per day and unlimited delayedquotes. Company research and market updates such as movers and performers areavailable. Links to the Yellow and White Pages let you search for financial Advisers. Stock news is available by ticker symbol.Investoramawww.investorama.comDoug Gerlach’s Investorama is a wonderfully comprehensive directory for investors. Researching a stock is especially easy as there is a huge variety of research,company background and analysis available including several types of quotes andcharts from BigCharts. A great site.Investor Guideinvestorguide.comThe Investor Guide is a tremendous resource for personal investing on the Web; inaddition to quotes and news, they have over 1,000 responses to investment ques-
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tions. This excellent, comprehensive site focuses on investing, personal finance, andeducation. They also run the hedge hog investment competition. Have you everwanted to create and manage your own $1,000,000 hedge fund? Here’s yourchance.Investor Homewww.investorhome.comThe Investor Home page is a treasure trove of links, quotes, charts, research, profiles,and earnings estimates. This site has won five awards the last time we checked.Money Clubmoneyclub.comThe MoneyClub has information on all aspects of money. In addition to the infocenter and news room there is basic stock and quote information. A wide variety oftopics, such as, IPOs, real estate, credit and debt collection, banking, insurance, retirement, and taxes are also covered.Optionetics.comwww.optionetics.comThe Optionetics.com site has comprehensive information available on all financialmarkets. It offers quotes, market analysis, and a multitude of daily articles by insightful investment journalists. Make sure to check out the Platinum area, a comprehensive options analysis program designed to fit the needs of the active option trader.Stocks.comwww.stocks.comThe Stocks.com site is a financial resources guide with access to quotes and research and a ton of excellent links.StockSecretswww.stocksecrets.comThe Stock Secrets site claims to be the most complete financial library on the Internet. Use its search engine to scroll through more than 3,000 pages of financialbooks.Silicon Investorwww.siliconinvestor.comThe Silicon Investor site claims to be the largest discussion community on the Webwith over 3,500,000 messages in its database. This haven for tech stock investorsspecializes in computers, software, communication, semis, biotechnology and medical devices, and much more. Quotes and charts are supplied by North AmericanQuotations, Inc., and are delayed 15 to 20 minutes.TheStreet.com.www.thestreet.comControversial analyst Jim Cramer hosts this site. Most active, and percentage gainers and losers are prominent features here. Two weeks free at sign-on, with interesting articles and insights. Excellent commentary and market analysis can bedelivered to your desktop (available by subscription).
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Thomson Investors Networkwww.thomsoninvest.netThe Thomson Invest site allows you to access news from their newsroom and retrieve selected articles in from the Market Monitor. Research, news, and intradayquotes are nice features.WallStreetCitywww.wallstreetcity.comThe Wall Street City site has it all, from market analysis, commentary, and consensus reports to news, quotes, charts, reports, and the S&P Marketscope.Wall Street Research Netwww.wsrn.comThe Wall Street Research Net has over 500,000 links to help professional and private investors perform fundamental research on actively traded companies and mutual funds, and locates important economic data that moves markets.World Wide Financial Networkwww.wwfn.comThe World Wide Financial Network has an excellent variety of investor resources—from indexes, point and figure charts, and quotes to extensive research, feature articles, and access to online brokers. Overall a great site.
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APPENDIX M. ONLINE BROKERAGE DIRECTORYOnline BrokerageWeb SiteA.B. Watleywww.abwatley.comAccutradewww.accutrade.comAmerican First Associates www.aftrader.comAmerican Expresswww.americanexpress.com/directFinancial DirectAmeritradewww.ameritrade.comBCL Onlinewww.bclnet.comBenjamin & Jeroldwww.stockoptions.comDiscount BrokerageBOSC Online Brokerage www.oneinvest.comBrown & Co.www.brownco.comBull & Bear Onlinewww.bullbear.comBush Burns Securitieswww.bushburns.comCastle Securitieswww.castleonline.comCharles Schwab Onlinewww.eschwab.comCiticorp Investmentwww.citicorp.com/us/investmentsCompuTEL Securitieswww.computel.comCyBerBroker, Inc.www.cybercorp.comDatek Onlinewww.datek.comDiscover Directwww.discoverbrokerage.comDLJ Directwww.dljdirect.comDreyfus BrokerageService www.edreyfus.comEmpire Financial Groupwww.lowfees.comE*Tradewww.etrade.comFarSight Financialwww.farsight.comFidelity Web Xpresswww.fidelity.comFirstrade.comwww.firstrade.comForbesNetwww.forbesnet.comFreedom Investmentswww.freedominvestments.comFrontierwww.ffutures.comInternetTrading.Comwww.internettrading.comInvestEXpress Onlinewww.investexpress.comInvestIN.com Securitieswww.investinsecs.comInvesTradewww.investrade.comJ.B. Oxford & Company www.jboxford.comLexit Capitalwww.lexitcapital.comMain Street Marketwww.mainstmarket.comMB Tradingwww.mbtrading.comMr. Stockwww.mrstock.comMuriel Siebert & Co.www.siebertnet.comMyDiscountBroker.comwww.mydiscountbroker.com
Phone888-229-2853800-494-8939888-682-6973800-297-5300800-454-9272800-621-0392800-446-5112888-843-6382800-225-6707800-285-5232800-821-4803800-891-1003800-225-8570800-846-5200800-432-0327877-729-2379800-823-2835800-584-6837800-825-5723800-421-8395800-569-3337800-786-2575800-830-7483800-544-5555800-869-8800800-488-0090800-944-4033800-777-2438800-696-2811800-392-7192800-327-1883800-498-7120800-799-8870888-778-4998800-710-7160888-790-4800800-470-1896800-995-7880888-882-5600
APPENDIX M. ONLINE BROKERAGE DIRECTORYNational Discount Brokers www.ndb.comThe Net Investorwww.netinvestor.comOnline Trading.comwww.onlinetrading.comPeremel Onlinewww.peremel.comPreferred Tradewww.preferredtrade.comQuick & Reillywww.quick-reilly.comScottsdale Securitieswww.scottrade.comSunlogicwww.sunlogic.comSuretrade.comwww.suretrade.comTrade4Lesswww.trade4less.comTradewell Discountwww.trade-well.comInvestingTrading Directwww.tradingdirect.comTruTradewww.trutrade.comVision Tradewww.visiontrade.comWall Street Accesswww.wsaccess.comWall Street Discountwww.wsdc.comCorporationWallStreet Electronicawww.wallstreete.comWang Investmentswww.wangvest.comWaterhouse Webrokerwww.tdwaterhouse.comWeb Street.comwww.webstreetsecurities.comWilshire Capitalwww.wilshirecm.comWyse Securitieswww.wysesecurities.com
429800-888-3999800-NET-4250800-995-1076800-737-3635800-889-9178800-793-8050800-619-7283800-556-4600800-394-1452800-780-3543888-907-9797212-766-0241800-328-8600800-374-1940800-925-5781888-492-5578888-925-5783800-353-9264888-687-0984800-932-8723800-926-9991800-640-8668
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APPENDIX N. FORMULASCall Options: Intrinsic value = Underlying asset(UA)’s Current price– Call strike pricePut Options: Intrinsic value = Put strike price – Underlying Asset’s Current priceTime Value = Option premium – Intrinsic valueTRIN = Volume declining/Number decliningVolume advancing/Number advancingCurrent Ratio = Current assets/Current liabilitiesDebt to Equity =
Total liabilitiesShareholder’s equity
P/E Ratio: Stock price divided by Earnings per share – P = Price/E= Earnings per sharePeg Ratio = P/E ratio/EPS growth rateRelative Strength Index (RSI)RSI = 100 –
1001 + RS
RS = Average of x days’ up closesAverage of x days’ down closes
Index
accounting irregularity, 386–387advance, indicators of, 361advance/decline (A/D) line, 191, 192, 355advance/decline (A/D) ratio, 304–305after-hours trading, 20–21AIQ Option Expert, 366–367Allen, Paul, 332–333Amazon.com, 310American Stock Exchange (AMEX), 7–8,416AMEX Oil Index, 186, 187analysis paralysis, 389analystcoverage by, 212–214description of, 212downgrade and, 360, 385role of, 38–40terminology of, 213annual reportdescription of, 6, 221–223obtaining, 214–216statement of cash flows, 223,239–240See also balance sheet; incomestatementantitrust law, 330, 332Arm & Hammer, 62ascending triangle, 350ask, 14, 75, 125assessment of financial situation, 29–30,87–88, 394–395asset allocation, 51, 79–80, 88–89
assignment, 138, 139at-the-money (ATM) option, 127auction-style market, 7, 119averaging down, 360balance sheetcurrent ratio, 233–234debt-to-equity ratio, 234–236description of, 30, 223, 231–233personal, 394Bank of England, 334bar chart, 250–251Barron’s, 109, 384, 418bear call spread, 401bear marketcharacteristics of, 94description of, 77trends and, 182bear put spread, 401Berkshire Hathaway, 325betas, 106bid, 14, 75, 125BigEasyInvestor, 366Bloomberg web site, 241, 421blue-chip stocks, 65–66Body Shop, The, 334–335Boeing, 163Bollinger, John, 306Bollinger bands, 275–278,358–359bonds, 24–26, 164book value, 97
431
432bottomdouble, 342, 343market, 261, 292, 311–312, 361rounding, 342, 344triple, 342, 343Branson, Richard, 333breakout, 264–267broad market, 92broad market analysiscapital, flow of, 165–166government reports, 166–176HOLDRS, 188–189indexes, 180–188indicators, 191–194industry sectors, 189–190inflation, interest rates, and the Fed,159–165international and political factors,178–180overview of, 158–159seasonal factors, 177–178supply and demand, 178brokerchanging, 43commission of, 41–42complaints about, 49, 53description of, 10role of, 37–39selecting, 42–43, 52–54Series 7, 41brokerage account, 3brokerage firmcosts, 47–48deep discount, 44–45description of, 10discount, 44full-service, 40–44history of, 36–37online, 45–46, 428–429research offerings, 46–47Buffett, Warren, 11, 208, 324–325bull call spread, 348–349, 400bull marketcharacteristics of, 94description of, 67, 69, 77long call strategy and, 134–137trends and, 182bull put spread, 401
INDEXbusiness risk, 27buyback, 360–361buy signals, 365calendar spread, 357–358call optionbasics of, 133–134description of, 118, 121–122formula, 430intrinsic and time value of, 128long call example, 134–137sentiment analysis and, 298–299, 303short call example, 134, 137–141, 142candlestick chart, 249–250C-A-N-S-L-I-M acronym, 327capacity utilization report, 172capital, flow of, 165–166capitalization-weighted index, 180–181capitulation, 261–262, 292, 311–312, 361Carnegie, Andrew, 329cash account, 69cash equivalents, 22, 232cash trade, 72CBOE Volatility Index (VIX), 293–294,296, 358certificate of deposit (CD), 22Certified Financial Planner (CFP), 51chartsbar type, 250–251candlestick type, 249–250description of, 