Investing

What Is A Gamma Squeeze? The 1 Answer You Need

October 14, 2021 By Kevin | Just Start Investing Leave a Comment

What Is A Gamma Squeeze? A ton of investing terms exist that you might not be familiar with. A “squeeze” is one of those. Whenever a company experiences hasty changes to its stock price, it creates the perfect environment for a squeeze.

A squeeze in investing terms means that the investors of that stock are “squeezed” into an unfamiliar position. This is usually due to a high buying demand for that stock. The investors that shorted the stock are now rushing to exit their position. As one can imagine, this drives the price to go even higher.

There are two types of squeezes in the investing world – a short squeeze and a gamma squeeze. The stock market is a great place for amateur traders to make money. So understanding how a gamma and a short squeeze works are important. Let’s explain both.

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What Is A Hedge Fund? The Founders Guide

October 9, 2021 By Kevin | Just Start Investing Leave a Comment

What is a hedge fund? Hedge funds are special types of investment instruments in which individuals and institutions pool their capital together to invest in various assets while relying on complex strategies to build their portfolios and manage their risks. As a result, rich individuals can invest part of their money into hedge funds as a way to beat the market’s average return.

Unlike mutual funds, hedge funds invest in a wide range of assets rather than merely stocks and bonds.

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Call vs Put: The 1 Comparison You Need

October 1, 2021 By Kevin | Just Start Investing Leave a Comment

At times, it may make more sense to choose a call option, while a put may be more suitable at other times. No matter what your circumstances may be, it is important to understand the difference between call and put.

For stocks and other investments, there are two types of options contracts: call and put.

When deciding which option to use, you need to know its characteristics. There are both “right” and “wrong” ways to use things like everything in life. The “right” way to use call and put options is beyond the scope of this article, but suffice to say that you’ll never maximize their potential if you don’t understand their characteristics.

So what are the differences between them?

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Implied vs Realized Volatility: Ultimate Showdown

September 24, 2021 By Kiril Kuculoski Leave a Comment

Volatility measures the degree of variation in the price of a security. Though known for its use by options traders, volatility measurements is one of the three core considerations (alongside price and volume) that even equity traders should use — because as this article will show, it can indicate a stock market correction.

There are two types of volatility traders must have in their toolbelt — Implied & Realized. To begin with, implied volatility relates to derivatives, and realized relates to equities.

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Biotech Stocks: What do the Numbers Say?

August 30, 2021 By Kevin | Just Start Investing

The interest in biotech stocks skyrocketed after the Coronavirus outbreak in 2020, increasing by 3000% in just a few months.

Modern technology allows innovative biotech companies to use modern science to create products that are helpful to people’s health.

A variety of diagnostic tools and vaccines are manufactured by applying modern technology.

It’s vital to take a closer look at what the numbers say about stocks in the biotech industry before making an investment decision, irrespective of whether they focus on developing vaccines, improving agricultural processes, or utilizing biofuels to have a greater ecological impact.

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Investing

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