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Option Trading Strategies
Generally, an Options Trading Strategy involves the simultaneous purchase and/or sale of different option contracts, also known as an Option Combination. I say generally because there are such a wide variety of option strategies that use multiple legs as their structure, however, even a one legged Long Call Option can be viewed as an option [...]
Continue reading...Learning Options Trading
6. July 2009
Source: options-trading.onlinetrading-tips.com If you leaf through the business section of major broadsheets, you will mostly likely notice that some company executives employ strategies called options trading as part of their annual salaries or as bonuses for jobs done well. But what are options, really? Are they similar to stocks? What does it mean when they say [...]
Continue reading...Options Trading Nuggets of Wisdom
19. June 2009
Never let a profitable options trading position turn around and hit your original stop loss. Once you’re making money, start trailing up your stop and get it to breakeven as soon as you can. The trend is your friend. Try not to bet against a market or sector. If Retail is tanking, don’t be so eager [...]
Continue reading...Options Trading Guidelines
3. June 2009
Source: financialpicks.com Pros: Going into options trading gives you tremendous opportunity for huge gains. 500%+ gains are not unheard of at all. Also, the worst that can happen is your option goes to zero. It’s not like other leveraged products like S&P 500 futures where you can lose more than what’s in your account. Cons: Options decay [...]
Continue reading...Stocks Investing - Insider Trading is Faster in Making Money
14. May 2009
Source: stocktube.blogspot.com Options trading is on the rise, if the the number of reports are to be believed in. Regulators are feeling the heat on Wall Street and begin to compare it to the 1980s when the illegal insider trading was said to be like printing money. Insider trading is not confined to Wall Street but [...]
Continue reading...What is an Option?
15. August 2008
Before you enter the world of options trading, it is best that you understand what an option is. An option is a contract which conveys to its holder the right, but not the obligation, to buy or sell shares of the underlying security at a specified price on or before a given date. After this given date, [...]
Continue reading...How Options Work
14. August 2008
Imagine somebody owns a piece of property which you really like, but do not have enough spare cash to purchase at short notice. There are various means available to you to raise the money, but they all need time to accomplish. So what can you do to prevent the owner from selling the property to [...]
Continue reading...Getting Started in Options
14. August 2008
The first thing that you have to do when you are looking to begin trading in stock options is to read everything that you can find on the topic. Stock options are not stocks, and trading in stocks does not qualify you to trade in options by default. If you want to be successful, see [...]
Continue reading...Options Trading 101
13. August 2008
If you’re trading stocks or bonds, there are a whole range of strategies you can follow, which range from the long term buy and hold, right through to day trading using technical analysis. Options trading is very similar. Understanding exactly what an option is one of the trickiest things to understand when you’re starting out. Here’s [...]
Continue reading...Options Trading Terms
12. August 2008
Just are there are terms associated with Stocks Trading, there are specific terms associated with options trading. But first, you must understand that options is an investment instrument that stems from stocks, and the fundamental principle of its function is to confer a options holder the right to buy or sell shares from the options seller [...]
Continue reading...Options Trading | How Call Options Work
12. August 2008
Understanding how Call Options work and your choices in various scenarios relating to the fluctuation of the related stock prices are the fundamentals of Options Trading. This article gives an overview of Call Options and how you can make money through purchasing and selling Call Options. A Call Option gives its buyer (holder) the right to [...]
Continue reading...Options Trading | How Put Options Work
12. August 2008
Understanding how Put Options work and your choices in various scenarios relating to the fluctuation of the related stock prices are the fundamentals of Options Trading. This article gives an overview of Put Options and how you can make money through purchasing and selling Put Options. A Put Option gives its buyer (holder) the right to [...]
Continue reading...Options Trading | Options Strategies
10. August 2008
If you are interested in options trading, you need to take an interest in option stock trading strategies. To understand stock options better lets see a simple dictionary definition. Strategy can be defined as a skill in managing or planning, especially by using stratagems. The words managing or planning using stratagems to achieve a particular end or [...]
Continue reading...Options Trading | Options Straddling Strategies
9. August 2008
The straddle strategy is an option strategy that’s based on buying both a call and put of a stock. Note that there are various forms of straddles, but we will only be covering the basic straddle strategy. To initiate a Straddle, we would buy a Call and Put of a stock with the same expiration [...]
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9. July 2009
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