On my trade blogs, you will see the following acronyms: BTO, BTC, STO, and STC. They are acronyms for transactions of stocks, bonds, and options. And here are definitions.
BTO: Buy to Open
BTC: Buy to Close
STO: Sell to Open
STC: Sell to Close
So, when do you see them? Here is an example.
I decided to buy (or long) 100 shares of Walmart Stock (WMT) at $72.00 per share (and I had a cash account of $10,000). The transaction will show:
BTO WMT 100
Position
WMT 100 $7,200.00
Cash $2,800.00
If I decided to sell that Walmart stock at $73.00 per share, it will show:
STC WMT 100
Position
Cash $10,100.00
But when do you see STO or BTC? You see them when you are shorting stocks. Shorting means you are borrowing stocks to sell them. Here is an example
I decided to sell (or short) 100 shares of Walmart Stock at $72.00 per share (and I had a cash account of $10,000). I had to borrow WMT from my brokerage. The transaction will show:
STO WMT 100
Position
WMT -100 ($7,200.00)
Cash $17,200.00
If I decided to buy back to give the shares back to my brokerage at $71.00 per share, it will show:
BTC WMT 100
Position
Cash $10,100.00
What if the stock price went up and I had to buy the shares back at $73.00 per share? My position will be:
Cash $9,900.00
Monday, July 16, 2012
Saturday, July 14, 2012
Saturday Savings Idea: Saving by Buying... Gift Cards!
While the blog is mainly about investing in general, I decided to talk about how to save money a bit... by buying gift cards! I know, I know! Clark Howard loves to say that gift cards are a waste of money. I tend to agree with that statement, especially when I get gift cards for places that I don’t really care to shop at. But there is an exception to the rule. Did you know that you can save money by buying gift cards? Here is an example: I have lots of house projects, so I am always going to either Lowe’s or Home Depot. I usually make a list of what I need to buy and price everything out. Then I go to one of the following websites: CardPool.com, GiftCardRescue.com or PlasticJungle.com. I can usually get a gift card somewhere between 7 to 10% off the face value (you can find a better deal during the Christmas season – more supply than demand). In fact, just this week, my wife and I ordered a JC Penney gift card with 30% off.
Friday, July 13, 2012
Rules of this Site
Rule #1: Do not, I repeat – DO NOT – follow any investment advice given on this site. The site is for informational, educational, and entertainment purposes only. The decision I make concerning my goals and money work for me and close family (hopefully), but given your circumstances, they may not be relevant.
Rule #2: I am not your financial advisor.
Rule #3: I will advertise on this site.
Rule #4: Please Comment. I want to hear from you and interact, so please comment.
Rule #2: I am not your financial advisor.
Rule #3: I will advertise on this site.
Rule #4: Please Comment. I want to hear from you and interact, so please comment.
Thursday, July 12, 2012
Trade on July 12, 2012 - Portfolio 2
| Transaction | Symbol | Expiration | Strike Price | Qty | Fill Price | Commission | Net Amount |
| BTO | SPY | Aug-12 | $121.00 | 15 | $0.37 | $2.25 | ($557.25) |
| STO | SPY | Aug-12 | $123.00 | -10 | $0.50 | $1.50 | $498.50 |
| STO | SPY | Aug-12 | $126.00 | -5 | $0.82 | $13.25 | $396.75 |
| Net Proceed | $338.00 | ||||||
| Required Margin | $4,500.00 | ||||||
| ROI | 7.511% | ||||||
Trade on July 12, 2012 - Portfolio 1
| Transaction | Symbol | Expiration | Strike Price | Qty | Fill Price | Commission | Net Amount |
| BTO | SPY | Aug-12 | $121.00 | 15 | $0.37 | $2.25 | ($557.25) |
| STO | SPY | Aug-12 | $123.00 | -10 | $0.50 | $1.50 | $498.50 |
| STO | SPY | Aug-12 | $126.00 | -5 | $0.81 | $13.25 | $391.75 |
| Net Proceed | $333.00 | ||||||
| Required Margin | $4,500.00 | ||||||
| ROI | 7.400% | ||||||
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