Equity Options Investment Challenge
You have $1,000,000 to invest in equities and equity options for one hour. Create a portfolio, email the halfway selection, and use the PORT function to track value changes. The participant with the highest earnings wins the challenge. Additional rules and guidelines ensure fair play and strategy. Discover tickers, analyze Bloomberg quotes, pricing charts, and exercise tasks for hands-on learning and application.
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Rules first half of the class You have $1000000 to invest for the next hour (Not really of course) You must choose a portfolio of equities and equity options. By the halfway point of the class, you should have selected the tickers you are interested in and assigned a percentage to each You should email me a spreadsheet with tickers and percentages at the halfway point
Rules second half of the class You should use the PORT function to price the change in value of your portfolio between two times. Whoever makes the most money in 1 hour wins the prize.
Additional rules You are allowed to go short on some options but only up to a maximum of $500000. Your trading strategy must be a static one. In other words you are going to choose what stocks and options to hold for one hour. To be eligible for the prize you must have a completed the PORT by the end of the class.
Tickers Every Bloomberg security has a ticker . This is the code used to identify it in Bloomberg. GOOG US Equity Google stocks traded in US C US Equity Citigroup stocks traded in US TSCO LN Equity Tesco stocks traded in the UK Use SECF the security finder function to find a ticker if you know the name of the company
A summary for an equity Bloomberg Quote - TSCO LN Equity BQ
Pricing charts GP Graph of historical prices GPO Graph of historical prices with moving average. GIP Graph of intraday prices GIP 3 Graphs of intraday prices for the last 3 days
Exercise Find the ticker for Nobel Group View the last 4 days stock prices Something interesting has happened to Nobel. What? SECF Security finder GIP Graph intraday prices On the graph you can select news stories at any particular time by clicking news from the toolbar at the top of the charts.
Fundamentals FA Financial analysis. Company financial history and ratios. Balance sheets in standard format. Try to value the company from fundamentals. DES - A description of the company and its fundamentals ANC The advice of the analysts
Finding interesting stocks NEWS Bloomberg news menu MOST Most active, most up, most down. The news stories on these stocks. HILO Which companies have reached a new High or Low value over a given time interval (say which are the highest they ve been for a year). IMOV Which stocks are changing the major indices and industry groups
Equity Search EQS lets you perform a search for equities using many different criteria. Not that easy to use (HELP EQS) Delete existing criteria by clicking the red cross Click to add a criterion Trading Status: Active Pharmaceuticals Current Market Cap > 1000M Volatility > 30 Actions->Scoring Models->Social Ranking>Update allows you to rank according to some kind of measure of how ethical a stock is.
Exercises Find the top 500 actively traded pharmaceutical companies by market cap Find a finance company that has lots of women working in management
The big picture WEI World equity indices WEIS World equity indices ranked by performance
Exchange traded options Type GOOG US Equity OMON for Options Monitor Question? What is an option. What do all the terms mean? Use DES to find out if these are American or European options.
Question Why does anybody trade in options?
Your task for the next few minutes Devise a strategy to win the competition I ve outlined. Write down how much you want to hold in each stock.
