- Trade Center
Average True Range calculates the average true price range over a period of time.
- Book Value Per Share
The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The term “book value” is a company’s assets minus its liabilities and is sometimes referred to as stockholder’s equity, owner’s equity, shareholder’s equity, or simply equity.
- Bull Market
A bull market occurs when a financial instrument has been and expects to continue to appreciate in value over time. There are short term and long term bull markets.
- Cash Flow Per Share
Cash flow per share can be calculated by dividing cash flow earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term.
- Covered Call
The covered call is the financial markets version of the real estate rental agreement. Whereas in a rental agreement the investor will find a property to invest in and create monthly cash flow through renting out the property. The covered call is similar in that an investor will find a different asset class called a stock and create monthly cash flow through selling calls options against the stock that is owned.
- Dividend Per Share (DPS)
Dividends per share = total dividends paid ÷ total shares outstanding
A company’s profits or earnings are divided by the total number of outstanding shares of stock to calculate the Earnings per Share (ttm). Earnings per Share is usually abbreviated as EPS and the “ttm” that follows stands for Trailing Twelve Months. This means that EPS (ttm) is the total earnings or profits the company has made over the last 12 months.
- Free Cash Flow Per Share
Free cash flow per share is a measure of how much cash per share a business generates after accounting for capital expenditures like equipment or buildings. Free cash flow is available to be used for expansion, dividends, debt reduction, or other purposes.
- Gross Profit Margin
calculated by dividing gross profit by revenues
The action or process of investing money for profit or material result.
A thing that is worth buying because it may be profitable or useful in the future.
- Net Profit Margin
percentage of revenue left after all expenses have been deducted from sales
- Operating Profit Margin
what proportion of a company’s revenue is left over after paying for variable costs of production
a range of investments held by a person or organization.
- Return on Assets
net income divided by total assets
- Return on Equity
Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
- Sales Per Share
Sales per share is a ratio that computes the total revenue earned per share over a 12-month period. It is calculated by dividing total revenue earned in a fiscal year by the weighted average of shares outstanding for that fiscal year: Also known as “revenue per share“.
- Tackle 25
The Tackle 25 is a list of the 25 best equities to perform covered calls on. In creating the list Tackle Trading took into account the following: PE ratios, PEG, Earnings Growth, Earnings Projections, ROE, Profit Margins, Market Cap, Volume in both the stock and options, technical trends and many other factors.
- Ticker Symbol
Stocks, Options, Futures & Forex all have unique ticker symbols which are also known as “hard-code” for traders and a sure way to identify that we are buying and selling the correct security
- Trading Journal
One of the most important things you can do as a trader is to journal your trades. The more data you have, the better you can identify if you’re doing a good job, or not, and then make corrections and adjustments to your trading and your system.
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