Tag Archive | "Options Strategies"
What is an Option?
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...Options Trading 101
Wednesday, August 13, 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 | Options Strategies
Sunday, August 10, 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
Saturday, August 9, 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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Friday, August 15, 2008
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