Wednesday, June 23rd, 2021

European Style Stock Options

In trading European style options, an options contract can only be exercised on expiration of the options contract. When trading exchange-traded options in the USA, standardized stock options contracts typically consist of one hundred shares of the stock. Contract lengths are standardized. Although European style stock options can only be [...]

Trading Options over the Counter

Trading options over the counter can be quite profitable. Trading options over the counter also entails risks not seen in standardized options trading. Traders buy options to hedge risk and traders buy and sell options on speculation in search of profits. Both can be reasons for trading options over the counter. Over [...]

Execution of Options Trades

Although an options contract may not expire for months, its value can vary significantly from day to day and even hour to hour. Thus the execution of options trades in a professional and timely fashion is what leads to profits. A profitable option trade is based on a good knowledge of [...]

Practical Options Trading Tactics

Successful options trading often boils down to practical options trading tactics, strategy, and tools. Options trading tools include your trade station, internet connection, and software. They also include your skill set. There are a number of basic options strategies. In brief, these are the long call, short call, long put, [...]