Firm:
YDream Financial Services, Inc.
Job Title:
President
Biography:
Sam H. Fawaz, is a Certified Financial Planner™ and licensed Certified Public Accountant. He is a member of the National Association of Personal Financial Advisors (NAPFA), Financial Planning Association (FPA) and the American Institute of Certified Public Accountants (AICPA). While professional requirements dictate an average of 40 credit hours of continuing professional education, Sam routinely attends more than double that amount each year to stay on the leading edge of financial and tax planning techniques.
Sam has been practicing in the financial services arena since 1980, beginning in the tax compliance and planning area and eventually expanding to comprehensive personal financial planning.
Sam has expertise in many areas of personal finance and technology and has always been fascinated with the role of money in society. Helping others prosper and succeed has been Sam's mission since he decided to dedicate his life to financial planning. His extensive technology and process background allows him to render services on a streamlined and efficient basis, thereby delivering superior service and reporting at the lowest cost to his clients.
Sam has been generous with his time and expertise and has participated in numerous community and charitable events as a volunteer. He was a director on the board of the Financial Planning Association of Michigan. He was also on the board of the Canton (MI) Community Foundation giving strong direction to the investment and finance committee and served a term on the Canton (MI) Chamber of Commerce where he was treasurer for the 750 member chamber during his last year as a board member. Sam has also provided pro bono service every year and has volunteered in the IRS's senior citizen and low-income tax assistance programs for many years.
Sam has been married since 2002 and has two daughters.
Fee Structure:
Fee-Only
CRD Number:
128995
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Does your Financial Planner or Advisor Put Your Interests First?
The probability of profit in any option is dependent on how far "in-the-money" or "out-of-the-money") the option is, and varies depending on stock price movement. In-the-money describes how much the strike price (the stock price where the option is contracted to be bought or sold) is below the current stock price (in the case of a call) or below the current strike price (in the case of a put). The further that an option is in-the-money, the more likely it will not expire worthless (but not necessarily profitable). Whether it is profitable depends on the current price of the stock and the amount paid for the option. So the broker (or market maker) would not necessarily lose money if he sold an option with a greater than 50% chance of expiring in the money.
Deep in-the-money options tend to be illiquid (wide bid-ask spreads), which generates more profits for market makers. They also present greater risk of assignment/exercise. When market makers sell options that become at risk of exercise or loss to them, they will sell or buy the underlying shares (depending on their short option positions) to hedge their risk.
If an option has some extrinsic value (sometimes known as time value for simplicity's sake), the option buyer who exercises that option is essentially overpaying for the stock that could have been bought on the open market cheaper. For the market maker, it's always a nice bonus profit when that happens.
You might sell an options when the chance of profit is greater than 50% if you want to hedge your stock position and don't mind having the stock called away (it's reached your target for profitability).