Competition!

Rules – first half of the class You have $ 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 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 $ 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.