Wednesday, June 23rd, 2021

Options Trading Facts

An often used method of trading stocks, currencies, or futures is online options trading. By trading options, a trader limits his or her risk and exercises a degree of leverage as well. Traders use both fundamental and technical analysis to gain insight into the equities that underlie the options contracts that [...]

Basic Options Trading Tools

A beginning options trader needs to obtain and develop tools and skills necessary for options trading. Today online options trading allows a trader to access markets from his own trade station, using sophisticated software, a fast computer, and a high band width internet connection. In order to make money trading options, traders need to study [...]

Hedging versus Leverage in Options Trading

The issue of hedging versus risk in options trading mimics, to a degree, that of conservative versus investing or direct stock trading. To address the issue of hedging versus leverage in options trading we first need to look at buying and selling both puts and calls. A simple options trade goes as follows:
Buy a call [...]

Bear Put Spread

A trader looking to limit risk and gain limited profit in a falling market will often use a bear put spread in Forex, futures, or stock options trading. The trader uses both fundamental and technical analysis to assess the market. When he or she expects a moderate drop in price of [...]

Long Butterfly Options Strategy

There are so called non-directional options strategies for volatile markets in which the trader is not certain of eventual direction. The long butterfly options strategy is one of these. Neutral or non-directional strategies are configured in such a way that the trader is likely to profit whether the underlying equity price [...]