Monday, March 30th, 2020

Diagonal Spreads Explained

There are an almost infinite number of ways to trade the markets but all share one common goal and that is to maximize profits with the minimum of losses. While there are lots of different techniques that can be employed to achieve this, many traders use similar methods to get results.
Diagonal spreads are a way [...]

Trading Oil Options

As hopes for a stronger world economy increase trading oil options could become increasingly profitable. In trading oil options, or trading any options, profitability is linked to price changes in the underlying equity. In this case profit in trading oil options is linked to the price of oil and to the [...]

When to Buy Puts

Puts are options contracts that give the buyer the option but do not confer an obligation to sell 100 shares of an underlying stock for a price stated in the individual options contract. The same contract will confer upon the seller the obligation to buy the same 100 shares of stock [...]

What Are Calls and Puts?

What are calls and puts in options trading? Calls and puts are the names for the types of contracts used to buy and sell stock, commodity, and futures options. The answer to “What are calls and puts?” depends also, to a degree, upon the point of view of the trader. Calls and [...]

How Do Options Work?

It is possible to buy and sell options on various underlying equities on various exchanges such as the CBOE. There are options on equity securities, index options, debt options, foreign currency options. How do options work in these different arenas? In each case the options trader will either buy or sell [...]

What Are Stock Options?

The technical answer to the question, “What are stock options?” is that stock options are derivative financial instruments that give the buyer the right but not the obligation to buy or sell 100 shares of a stock specified in the contract. Stock options are contracts that run over a specific time [...]

How to Buy Stock Options

Learning how to buy stock options is a necessity for options trading. All options traders must read the document, “Characteristics and Risks of Standardized Options,” which is also known as the “Options Disclosure Document.” This publication of the Options Clearing Corporation provides detailed information as to how to trade options, [...]

Is Trading Currency Options Risky?

Is trading currency options risky? If you assume that trading foreign exchange options is easy and approach it that way then, yes, it is risky. If you prepare yourself and learn the trade then making a living trading options on currencies is absolutely possible. The first thing to remember when posing [...]

How to Trade Options

To learn how to trade options successfully the beginning trader will want to start with the basics. There several kinds of options trading, broken down into buying or selling put options or call options. When a stock options trader buys a put option or call option he or she pays what [...]

How do Stock Options Work?

For the investor interested in protecting recent stock gains a pertinent question is how do stock options work? For the trader interested in applying more leverage to his trades a useful question is how do stock options work? For the long term investor interested in increasing his current returns on his [...]

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