Retirement and Investing Expert
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.
Posts by Eric Reed:
One of the most important principles in options trading is known as put-call parity. The term describes a functional equivalence between a put option and a call option for the same asset, over the same time frame and on the same expiration date. When the prices of otherwise equivalent put and call options are not in parity it creates an opportunity for arbitrage. In other words, traders can profit off nothing more than the imparity (misalignment) of the contracts. This makes put-call parity an essential concept in options trading. To refine your understanding of put-call parity and how it can play into your overall options investment strategy, consider consulting with a financial advisor. Read more
When analysts talk about changes to market prices, interest rates or other financial metrics, they often do so in terms of “basis points.” A basis point is equal to a change of 0.01%, useful shorthand in an industry where fortunes can change on fractions of a percent. The prevalence of the term underscores just how massive financial transactions have become and, thus, why even seemingly microscopic changes in yield can render or ruin fortunes. Here’s what you need to know to better understand – and be able to use – a key Wall Street term, something that’s especially useful as you talk to your financial advisor. Read more
Investors have two primary emotions, fear and greed, according to CNN Money. The news service believes in this so much that it has created a metric around the idea. The Fear and Greed Index measures how investors across the entire stock market are feeling at any given point. When they’re fearful, expect selloffs and retrenched positions; when they’re greedy, expect buyers to snap up securities. Here’s how it works. Read more
8/25 Update: On August 8, President Trump signed an executive measure authorizing extra federal unemployment assistance to resume. Specifically, it calls for $300 in weekly federal assistance and … Read more