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Articles on Trending Technologies
Technical articles with clear explanations and examples
What is a Protective Put Option?
Options are a great way to make money from short-term sales. However, one must be aware of the market and make a resilient strategy to gain profits from the options. There are definitely some risks while investing in options, but they can be minimized to a large extent. A "protective put" is a special version of the put option to let the investors earn profit without having to lose money too badly if the strategy goes wrong.What is a protective put?A protective put is an investment strategy that is designed to help an investor limit the losses in case of ...
Read MoreWhat is Call Premium in Options?
If the issuers of the underlying security of an option call early, the investors lose some money. A call premium is a compensation paid by the issuers to make up for the gap or loss suffered by the option holders. The premium is meant to balance the risk option owners face while the underlying is exercised earlier than its maturity period.Call Premium – What is it?Some securities, such as bonds have the luxury to be called early. If such securities are kept as the underlying in an option, they may be called earlier than the deadline of the security. This ...
Read MoreOption Strategy – What is a Covered Call?
A covered call is an options strategy for which one needs to hold a long position in the underlying asset, such as a stock while selling the call option on the underlying asset. By selling the call option, the investor generally locks the price in of the asset, to enjoy a short-term profit. Moreover, the investor also gets a slight cushioning from a future decline in stock prices.When should you use the covered call option strategy?The covered call works well when the market is neutral or moderately bullish. In such circumstances, the future upside potential of the stock is limited. ...
Read MoreDifference between Diversifiable and Non-diversifiable Risk
The classification of a security risk into "diversifiable" and "non-diversifiable" risks has come up from the portfolio approach of capital investment. It has culminated in the well-known and popular Capital Asset Pricing Model (CAPM), developed by Sharpe, Lintner, and others. According to this framework, the "diversifiable risk" is the risk that can be eliminated by diversification, while "non-diversifiable risks" are the risks that cannot be diversified away. Many investors define the two types of risks as two complementary components of the standard deviation (SD) of a security's rate of return.Diversifiable RiskDiversifiable risk is also called as "unsystematic risk". These risks ...
Read MoreWhat is a Contingent Claim?
If you create a contract and then file for bankruptcy, then the lender or creditor can file a "contingent claim" against your estate. A contingent claim that is based on some future event can be dealt with by the court in a number of ways.Certain Conditions Must be MetFor the contingent claim to file, some certain events must have taken place in the preceding phases. Because the future event is not guaranteed to happen or the creditors cannot say with 100% condition that the bankruptcy will take place, the claim may or may not become valid.Contingent claims are usually filed ...
Read MoreWhat are Call and Put Options?
Options are "derivative investments", meaning the price movements of the investments are based on the price movements of another financial product. The financial product from which the derivative is obtained is called the "underlying."Call and Put OptionsOptions are contracts that provide the buyer the right to buy or sell an underlying asset, at a predetermined price and before a specific date.A call option is bought by a trader if the investor expects the price of the underlying to rise within a certain time frame.A put option is bought by a trader if he/she expects the price of the underlying to ...
Read MoreWhat does "Strike Price" mean in Option Contracts?
What is a Strike Price?In the case of an option contract, the "strike price" is the predetermined and agreed-upon price at which a specific security may be bought (by the call option holder) or sold (by the put option holder) until or upon the expiration of the contract. The term "strike price" is also termed as "exercise price."Options are derivatives that offer their buyers a right, or an option—but not an obligation—to buy or sell a security, such as a stock at a specific price (or the strike price) until or on a certain date (the expiration date).Buying or selling ...
Read MoreUsing next() function in Express.js
Express.js is a powerful tool for building web servers to hit API at backend. It has several advantages which makes it popular, however it has got some drawbacks too, for example, one needs to define different routes or middleware to handle different incoming requests from the client.In this article, we will see how to use the next() function in a middleware of Express.js. There are lots of middleware in Express.js. We will use the app.use() middleware to define the handler of the particular request made by client.Syntaxapp.use(path, (req, res, next) )Parameterspath – This is the path for which the middleware ...
Read MoreExpress.js – express.text() function
express.text() is a built-in middleware function in Express. It parses the incoming request payloads into a string and it is based upon the body-parser. This method returns the middleware that parses all the bodies as strings.Syntaxexpress.text([options])ParametersFollowing are the different options available with this methodoptionsinflate – It enables or disables the handling of the deflated or compressed bodies. Default: truelimit – It controls the maximum size of the request body.defaultCharset – This option specifies the default character set for the text content if the charset is not specified in the Content-type header of the request.type – It determines the media type ...
Read MoreExpress.js – express.raw() function
express.raw() is a built-in middleware function in Express. It parses the incoming requests into a buffer and it is based upon the body-parser. This method returns the middleware that parses all JSON bodies as buffer and only looks at the requests where the content-type header matches the type option.Syntaxexpress.raw([options])ParametersFollowing are the different options available with this methodoptions –inflate – This enables or disables the handling of the deflated or compressed bodies. Default: truelimit – Controls the maximum size of the request body.type – Determines the media type for the middleware that will be parsed.Example 1Create a file with the name "expressRaw.js" ...
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