Capping

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Dictionary Says

Definition of 'Capping'

1. The practice of selling large amounts of a commodity or security close to the options expiry date in order to prevent a rise in market price.

2. An attempt to keep a stock's price low or move its price lower by putting selling pressure on it.
Investopedia Says

Investopedia explains 'Capping'

1. The investor who might practice capping is a call option writer. If practicing capping, he or she is trying to avoid having to transfer the underlying security or commodity to the option holder. The goal is to have the option expire worthless so that the premium initially received by the writer is protected.

2. This is a violation of NASD rules.
Search results for

'Capping'

  • 3 Republican Plans For Your Taxes - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/3-Republican-Plans-For-Your-Taxes.aspx
    ... younger workers. Balancing the budget by 2020 and capping federal spending
    at 18% of GDP are also components of Perry's plan. The ...

  • Five Minute Investing: Things To Avoid | Investopedia

    http://www.investopedia.com/university/fiveminute/fiveminute3.asp
    ... The use of price selling targets mostly results in you capping your profits, as
    you cannot possibly make more of a profit than that which is reflected in the ...

  • How To Make Social Security Work - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/How-To-Make-Social-Security-Work.aspx
    ... Proponents of increasing the tax argue that capping taxes for someone making over
    $1 million per year doesn't make sense as the individual should have more ...

  • Fertilizer Stocks Ready To Sprout?

    http://stocks.investopedia.com/stock-analysis/cotd/MON20110713.aspx
    ... The $155 area has been capping recent rally attempts, and traders should keep
    a close eye on this area as CF attempts to push through again. ...

  • Add Industrial Production To Your Portfolio

    http://stocks.investopedia.com/stock-analysis/2011/Adding-Industrial-Production-Gains-XLB-IYJ-SEE-PX-PCP0126.aspx
    ... Industrial production rose in December by the largest amount in five months, capping
    off an 11% rise since hitting its recession lows in June 2009. ...

  • Water Cooler Finance: Goldman Fined, Financial Fixes And Apple's " ...

    http://financialedge.investopedia.com/financial-edge/0710/Water-Cooler-Finance-Goldman-Fined-Financial-Fixes-And-Apples-Apology.aspx
    ... Some of it was quite positive, like BP finally capping the oil leak, some was mixed,
    like the sweeping financial reforms that made their way through the Senate ...

  • Universal Healthcare: A Win For Health Insurers?

    http://stocks.investopedia.com/stock-analysis/2010/Universal-Healthcare-A-Win-For-Health-Insurers-UNH-AET-WLP-CI0129.aspx
    ... buy. That's where the good news ends. Capping the Medical Loss Ratio The
    health insurance industry is a for-profit industry. The ...

  • Trina Solar Shines Through The Haze

    http://stocks.investopedia.com/stock-analysis/2010/Trina-Solar-Shines-Through-The-Haze-TSL-LDK-JASO-STP-CSIQ1203.aspx
    ... The German government is making noise about possibly capping its subsidies, while
    the French are considering both a cap on installations as well as a further 10 ...

  • American Express Caps Consumer Credit

    http://stocks.investopedia.com/stock-analysis/2008/American-Express-Caps-Consumer-Credit-AXP-BAC-DFS1027.aspx
    American Express made the credit crunch personal for card holders by capping
    credit limits. Learn what this means for investors. ...

  • How Salary Caps Changed Sports - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0910/How-Salary-Caps-Changed-Sports.aspx
    ... franchise. Obviously, capping the amount a team can spend on players affects
    how much athletes can earn in any given year. This ...

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