Your cart is currently empty!
Author: Bill Campbell
Long Bearish Seagull Spread
If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…
Short Bullish Seagull Spread
If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…
Covered Call
If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…
Protective Put
If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…
Long Bullish Seagull Spread
If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…
Seagull Spreads
The reading on currency management briefly mentions seagull spreads, and suggests that there are two types: long seagull spreads and short seagull spreads. Apart from the fact that there are actually four types of seagull spreads (I’ll get to them in a moment), the biggest problem is that they never show a payoff diagram for…
Breakeven Analysis and Shutdown Analysis
By breakeven analysis we mean a determination of whether or not a firm can earn a positive (or zero) profit given its demand curve and its cost structure. By shutdown analysis we me a determination of whether or not a firm should continue to operate in the short run and in the long run given…
Accounting Profit vs. Economic Profit
This will be a short article, mercifully. Accounting profit is the difference between accounting revenue and accounting cost, while economic profit is the difference between economic revenue and economic cost. (I know: not very exciting. Hang in there; it gets better.) Accounting revenue and economic revenue are the same: total revenue. The amount you receive…
Marginal Stuff: Revenue, Cost, Profit, Product, & Return
Let’s get the terminology out of the way first. “Marginal” means “for the next unit”. Thus: Marginal Revenue: The increase in revenue (sales) from producing and selling one additional unit of whatever it is you’re producing and selling Marginal Cost: The increase in cost (expenses) from producing and selling one additional unit of whatever it…
Elasticities: Price, Income, and Cross
This article contains a number of supply and demand graphs. Before reading it, I encourage you to look at this short article I wrote on these graphs, so that you don’t risk suffering irreparable trauma when you see them. The idea of elasticity is fairly simple, yet it can be baffling to many candidates (primarily…