Friday, November 24th, 2017

Best Option Trading Strategy

Option trading strategies can be simple and they can be complex. The best route for beginners is to stick with the basics. Here is what Futures Magazine had to say about options strategies for beginners.
In a covered call (also called a buy-write), you hold a long position in an underlying asset [...]

Three Ways to Make Money with Options

A few years ago we noted that there are several kinds of options trading. Depending on why you choose to trade options there are various options trading strategies. In the end the point of trading options is either to hedge risk on money that you have already made or to make [...]

Stock Option Trading Information

The sort of stock option trading information that may be of use to you depends to a degree on your current experience and skill set. Beginners need stock option trading information regarding setting up a trade station, learning fundamental and technical analysis of stocks, and learning basic options strategies. More experienced [...]

Options, Dividends, and Volatility

There is an excellent discussion of specific options trades in the current online issue of Forbes (http://www.forbes.com/sites/stockoptionschannel/2013/11/11/interesting-april-2014-stock-options-for-cisco-systems/). The article discusses put and call options for April 2014 for Cisco (CSCO). At issue are the price of the put option or call option, the dividend paid by Cisco, and potential market volatility. [...]

The Leverage of Trading Options

The leverage of trading options is perhaps its greatest attraction. With the simple investment of a premium a trader can nail down a price at which he or she will be able to buy or sell an equity, no matter high or low the price may go. The leverage of buying  and [...]

Technical Analysis of Options

Technical analysis of options tells the trader what the options market will do next. Analysis of stock and market sector fundamentals will give the trader and investor an accurate picture of the long term prospects of the underlying equity. Investors and traders will often buy the underlying equity based upon [...]

Options Trading Volatility

The talk these days in options trading seems to be all about volatility. Options trading volatility is nothing new. The prime reference for options trading volatility is the VIX. According to the CBOE web site, “The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed [...]

Options Trading Volume

Options trading volume varies with the belief that prices of underlying equities will fluctuate. For example, institutions that are writing puts in options trading may not believe that a stock or commodity price will fall but those buying puts do. It is not the change in price of the underlying that drives interest and increases [...]

Trading Options on a Government Shutdown

Times when the stock market is volatile are commonly good times for stock options trading. Now as political infighting in Washington drives us closer to a government shutdown the markets are volatile. Buying puts or calls on stocks may be quite profitable. The rationale for trading options on a government [...]

Fifty-Two Week Moving Average in Options Trading

Options traders can use the fifty-two week moving average to decide whether puts or calls are a better approach to trading a given stock. The fifty-two week moving average helps spot both support and resistance levels. The fifty-two week moving average or moving averages for longer terms also help you see [...]

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