SMIPO Tickers
JPM
J.P. Morgan
The two types of options contracts.
Calls and Puts
What is the formula for P/E?
Stock Price/ Earnings-per-Share
SMIPO stands for what?
Student Managed Investment Portfolio Organization
Who is the head of the Federal Reserve?
Jerome Powell
O
Realty Income
A call option backed by shares you already own.
Covered Call
What model is primarily used by professionals to calculate IV (intrinsic value) of a stock?
DCF Model
How many sectors do we have?
10
What two industries did the U.S. exclude from the Chinese 145% tariffs?
TSM
Taiwan Semiconductor
Writing a put option with enough cash to buy at the contract price set aside.
Cash-Secured Put
What is the formula for Book Value per share of a stock?
(Total Assets - Total Liabilities)/ Shares Outstanding
3
The market is in an aggressive uptrend and is trading near all-time highs, is it a good time to buy?
No, this is when you should be looking to lock in some profit on your profitable positions. You typically want to buy when the market is trending down.
ANF
Abercrombie & Fitch
Buying a call and a put with the same strike price and expiration on a stock. (Usually done when volatility and movement are expected.)
Long Straddle
A company pays a consistent dividend of $2 per quarter and the stock is currently $100, what is the dividend yield?
8%, dividend yield is calculated with dividends per year. (4 *2) / 100.
Who must you notify when you want to present?
Chief of Operations and Chief of Investments
The market is in a downtrend, what are two ways we in SMIPO can generate cashflow even in a declining market?
1. Investing in companies who pay a dividend
2. Selling Covered Calls on our holdings
SMPL
The Simply Good Foods Co.
Selling puts hoping to acquire a stock at a low price then selling covered calls at a higher strike price on the recently acquired stock.
Wheel Strategy
A concept popularized by many noted value investors, in which an investor considers purchasing securities only when the market price is significantly below its intrinsic value is called?
Margin of Safety
Which sector currently has the largest weight outside of the passive trading reserves?
Financial
What does I.V. stand for when it comes to options contracts? Please give an explanation.
Implied Volatility, a premium added onto options prices based on the expected volatility of the underlying stock.