Comments on: Does options trading affect a company’s business? http://income-trader.com/does-options-trading-affect-a-companys-business/ Earn Your Income as a Trader Fri, 03 Sep 2010 10:03:45 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Ryan S http://income-trader.com/does-options-trading-affect-a-companys-business/comment-page-1/#comment-1627 Ryan S Tue, 09 Mar 2010 10:17:41 +0000 http://income-trader.com/does-options-trading-affect-a-companys-business/#comment-1627 options are a form of Derivitives... meaning their price is derived from something other than themselves (in this case it comes from the common stock)... so if an option move the common stock price it is similar to the tail wagging the dog.. but that doesnt stop it from happening ... a month ago Citigroup's common stock jumped higher mid day due to unusually high call options activity...... so even though its not supposed to happen it occasionally (rarely) does. options are a form of Derivitives… meaning their price is derived from something other than themselves (in this case it comes from the common stock)… so if an option move the common stock price it is similar to the tail wagging the dog.. but that doesnt stop it from happening … a month ago Citigroup’s common stock jumped higher mid day due to unusually high call options activity…… so even though its not supposed to happen it occasionally (rarely) does.

]]> By: baluscher http://income-trader.com/does-options-trading-affect-a-companys-business/comment-page-1/#comment-1626 baluscher Tue, 09 Mar 2010 09:38:11 +0000 http://income-trader.com/does-options-trading-affect-a-companys-business/#comment-1626 If you are trading options based on insider information (as that term is defined by the Securities and Exchange Commiussion) you can do yourself and the company a lot of harm and spend time sitting in a jail cell. Otherwise, options are just agreements between private individuals and they have no direct bearing on a company's business or finances. If you are trading options based on insider information (as that term is defined by the Securities and Exchange Commiussion) you can do yourself and the company a lot of harm and spend time sitting in a jail cell.

Otherwise, options are just agreements between private individuals and they have no direct bearing on a company’s business or finances.

]]> By: sabennet1 http://income-trader.com/does-options-trading-affect-a-companys-business/comment-page-1/#comment-1625 sabennet1 Tue, 09 Mar 2010 09:15:41 +0000 http://income-trader.com/does-options-trading-affect-a-companys-business/#comment-1625 Options are valued according to the stock price, and the stock itself is nothing more than what the market believes the company is worth based on future prospects. Thus said, stocks are NOT businesses themselves, and always innaccurate (if they were accurate, no one would ever make money because we could never find stocks at a discount!). Options are valued according to the stock price, and the stock itself is nothing more than what the market believes the company is worth based on future prospects. Thus said, stocks are NOT businesses themselves, and always innaccurate (if they were accurate, no one would ever make money because we could never find stocks at a discount!).

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