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Buy Barnes And Noble
 

Buy Barnes And Noble

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http://www.options-trading-education.com/4455/buy-barnes-and-noble/

Buy Barnes And Noble

The lucky thing would have been to Buy Barnes and Noble stock a week ago. The share price rose by as much as three quarters after news broke of Microsoft investing three hundred million in a Barnes and Noble subsidiary involving the Nook reader as well as other businesses. A key aspect of the deal is that Windows 8 will feature a Nook application. Thus Windows users will have access to a huge catalog of e-books and other digital material and Barnes and Noble will have the potential for a greatly enlarged subscriber base. It not too late to Buy Barnes and Noble stock but, at this point, the run up has already happened. It is not, however, too late to trade options on Barnes and Noble Stock. As often happens after a deal such as that between Barnes and Noble and Microsoft, the stocks in question may go up or may go down. A little technical analysis will help the options trader decide where market sentiment is going. A simple strategy such as a long straddle will allow the trader to profit if the stock continues to go up or if it reverses in a big correction.
Buy Barnes and Noble if the Stock Goes Up and Sell if it Goes Down
Options trading need not be excessively complicated. The long straddle is a case in point. There are three possibilities for the near term future of Barnes and Noble Stock. It may go up. It may go down. And it may stay put. Calls on Barnes and Noble allow the options trader to buy Barnes and Noble stock at the strike price, the contract price, no matter how high the price might actually go. Puts on the stock will allow the trader to sell the stock at the strike price no matter how low the price might fall. In purchasing a call and a put on the same stock with the same expiration date the trader executes a long straddle. He limits his risk to the price of the options contracts. As always the strike prices and spot prices in options trading is where the profit is.
On the face of it the deal that Barnes and Noble made with Microsoft is great. Investors saw this and bid the price of the stock up. But, Barnes and Noble still has the overhead of many large book stores in a world in which online sales are typically more efficient and cost effective. That is why many believed that Amazon.com would eventually drive Barnes and Noble out of business, just like it has done with many other bricks and mortar retailers. Thus there is still a significant downside potential for Barnes and Noble. On the other hand Barnes and Noble has a treasure trove of content and is looking for a way to sell it. The hand held eBook readers like Kindle and Nook are mutually exclusive. Thus it is all too easy for literary types to buy a Kindle and only read material sold by Amazon. The world of Windows uses, however, is huge and giving all Windows users access to material previously only available on a Nook is huge.

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    Buy Barnes And Noble Buy Barnes And Noble Presentation Transcript

    • Buy Barnes and Noble
    • To see a complete version of thispresentation and to obtain our freeEBook follow this link:http://portal.sliderocket.com/BLOUC/Buy-Barnes-And-NobleRead the Forex Conspiracy Report forinsights into trading foreign currencies.Get your copy athttp://portal.sliderocket.com/BLOUC/Buy-Barnes-And-Noble
    • The lucky thing would have been toBuy Barnes and Noble stock a weekago.The share price rose by as much asthree quarters after news broke ofMicrosoft investing three hundredmillion in a Barnes and Noblesubsidiary involving the Nook reader aswell as other businesses. www.Options-Trading-Education.com
    • A key aspect of the deal is thatWindows 8 will feature a Nookapplication.Thus Windows users will have accessto a huge catalog of e-books and otherdigital material and Barnes and Noblewill have the potential for a greatlyenlarged subscriber base. www.Options-Trading-Education.com
    • It not too late to Buy Barnes andNoble stock but, at this point, the runup has already happened.It is not, however, too late to tradeoptions on Barnes and Noble Stock. www.Options-Trading-Education.com
    • As often happens after a deal such asthat between Barnes and Noble andMicrosoft, the stocks in question maygo up or may go down.A little technical analysis will help theoptions trader decide where marketsentiment is going. www.Options-Trading-Education.com
    • A simple strategy such as a longstraddle will allow the trader to profitif the stock continues to go up or if itreverses in a big correction.www.Options-Trading-Education.com
    • Buy Barnes and Noble if the Stock Goes Up and Sell if it Goes Down www.Options-Trading-Education.com
    • Options trading need not beexcessively complicated.The long straddle is a case in point.There are three possibilities for thenear term future of Barnes andNoble Stock.www.Options-Trading-Education.com
    • It may go up. It may go down. And it may stay put.www.Options-Trading-Education.com
    • Calls on Barnes and Noble allow theoptions trader to buy Barnes andNoble stock at the strike price, thecontract price, no matter how highthe price might actually go.www.Options-Trading-Education.com
    • Puts on the stock will allow thetrader to sell the stock at the strikeprice no matter how low the pricemight fall.www.Options-Trading-Education.com
    • In purchasing a call and a put on thesame stock with the same expirationdate the trader executes a longstraddle.www.Options-Trading-Education.com
    • He limits his risk to the price of theoptions contracts.As always the strike prices and spotprices in options trading is where theprofit is.www.Options-Trading-Education.com
    • On the face of it the deal thatBarnes and Noble made withMicrosoft is great. Investors saw thisand bid the price of the stock up.www.Options-Trading-Education.com
    • But, Barnes and Noble still has theoverhead of many large book storesin a world in which online sales aretypically more efficient and costeffective.www.Options-Trading-Education.com
    • That is why many believed thatAmazon.com would eventually driveBarnes and Noble out ofbusiness, just like it has done withmany other bricks and mortarretailers.www.Options-Trading-Education.com
    • Thus there is still a significantdownside potential for Barnes andNoble.On the other hand Barnes and Noblehas a treasure trove of content andis looking for a way to sell it.www.Options-Trading-Education.com
    • The hand held eBook readers likeKindle and Nook are mutuallyexclusive.Thus it is all too easy for literarytypes to buy a Kindle and only readmaterial sold by Amazon.www.Options-Trading-Education.com
    • The world of Windowsuses, however, is huge and giving allWindows users access to materialpreviously only available on a Nookis huge.www.Options-Trading-Education.com
    • The ability of to buy Barnes andNoble eBooks will pass to millions ofcomputer users, which fact was notlost on the markets.www.Options-Trading-Education.com
    • We only mention one long optionsstrategy in this case but there areany number of relatively simpleoptions strategies.www.Options-Trading-Education.com
    • As always we are not suggestingthat one buy Barnes and Nobleoptions or ignore them.The point of this exercise is todiscover useful strategies for tradingoptions.www.Options-Trading-Education.com
    • For more insights and useful informationregarding options and optionstrading, visit
    • www.Options-Trading-Education.com