Difference between Stock and Options Trading
December 26, 2013 by Jim Walker
Filed under Options Trading Education, Options Trading Tips, Profitable Options Trading
The difference between stock and options trading is a matter of risk hedging and leverage. Otherwise there is no difference between stock and options trading of stocks. In each case traders must learn and follow both the fundamentals that drive stock prices and technical analysis of market sentiment which leads to [...]
Stock Option Trading Information
December 23, 2013 by Jim Walker
Filed under Option Trading Education, Options Trading Education, Options Trading Tips
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 in a Stock Split
December 9, 2013 by Jim Walker
Filed under Call Options, Options Trading Education, Options Trading Strategies, Options Trading Tips, Put Options
What happens when you have purchased calls on XYZ Company and their stock splits? Options in a stock split also split, so to speak. Many traders believe that the resulting bump in stock price that occurs with a split is beneficial to those who have purchased call options or sold put options. [...]
Difference between Options and Futures
December 6, 2013 by Jim Walker
Filed under Option Trading Tips, Options Trading, Options Trading Education, Options Trading Strategies
In options trading one can trade options on futures contracts as well as on equities themselves. Having a clear sense of the difference between options and futures is essential in this regard. To understand the difference between options and futures let us start with a couple of basic definitions.
Futures Contracts
Futures [...]
Premium and Risk in Options Trading
December 6, 2013 by Jim Walker
Filed under Options Trading Education, Options Trading Strategies, Options Trading Tips
Premium and risk in options trading go hand in hand. The premium that an option buyer pays conveys the rights of the option. The premium is set by the market and is not a standardized term or condition of the option. It is a payment in full for the right but [...]