Friday, November 24th, 2017

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 [...]