Forex Options Trading

Forex options trading uses the same principles and tactics as stock options trading and commodity options trading. Forex options trading is the use of options in trading foreign currencies. In using options to trade foreign currencies traders enjoy the same benefits of options trading that they enjoy when trading other equities. Because traders only invest [...]

Bank Stock Options

Bank stock options trading can be profitable in times when stocks like Bank of America have lost a third of their value in the last year. The mortgage crisis still looms like a specter of doom over many US banks, including the largest, as many experts predict another wave of mortgage foreclosures. If, indeed, the [...]

Oil Futures Options

Crude oil futures and oil futures options dropped like rocks in pond at the news of the lightning rebel advance into Tripoli in the Libyan civil war. Oil futures and oil futures options had been driven higher by the threat to oil production posed by the civil war in the North African oil producer. Although [...]

Buying Options on Stocks

Buying options on stocks provides both stock investors and stock traders with two advantages over simply buying, or selling, stocks. Buying call options on stocks results in profits if the stocks go up in price and buying puts on stocks results in profits if the stocks fall in price. We recently wrote about buying calls [...]

Gold Stock Options

The market fell recently in response to Standard and Poor’s downgrade of US debt but gold prices rose. Gold stock options could be a profitable means of trading as the markets sort out the US and European debt dilemmas, the risk of a double dip recession, and the likelihood of another round of haggling over [...]

Buying Calls on Caterpillar

Caterpillar has been a stock analyst’s pick of late and buying calls on Caterpillar could be profitable. The fundamentals of the heavy equipment maker are a price to earnings ratio of 17.5 but a much reduced P/E ratio if one considers forward looking earnings. This stock has an intrinsic value substantially higher than its current [...]

Falling Asian Stocks and Dollar

As the US congress postures we see falling Asian stocks and the dollar. Countries such as Japan have prospered over the years due to strong exports, especially to the USA. Japan makes very competitive products. Japan also pursues a monetary policy of supporting the value of the US dollar. Japan banks and investors buy US [...]

Global Currency Crisis Options Trading

In the developing global currency crisis, options trading is probably a currency trader’s best bet. As the US government counts down to debt default the majority party, the once-responsible Republicans, are filling the airwaves with rhetoric. Democrats fear that every social program of the last generation will be lost in a massive game of “chicken” [...]

Oil Options Volatility

Oil options volatility is up as the European debt crisis threatens to spread to Italy and farther. Oil options volatility is a result of uncertainty. If the parties involved agree to back up Greek and Italian debt as well as that of Portugal markets will settle down. The underlying concern for oil options is that [...]

Trading Stock Options

Trading stock options is typically a short term business. Standard options contracts are three months, six months, or nine months. However, LEAPs, for Long Term Equity AnticiPation Securities have two year terms, always expiring in January. By the way, trading stock options is not an option for recently terminated employees of Skype. Before the internet [...]

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