Wednesday, June 23rd, 2021

Trade War? Buy Options

The long-running bull market is starting to weaken. And now, President Trump seems bent on starting a trade war by putting tariffs on steel and aluminum imports. The market’s initial response is to head downward. Will there really be a trade war? And would a trade war hurt the stock market? If [...]

How Should I Start Trading Options?

With uncertainty in the stock market these days there is a lot of focus on trading options. If you are new to stock trading you may have been advised that by trading options you can limit your risk and leverage your trading capital. If you are interested, how should you start trading [...]

How to Trade Stock Options for Beginners

Options trading can be a profitable way to trade stocks and a way to limit losses as well. Options trading provides traders with a means of leveraging a small trading account into large gains. But in order gain profits in options trading you need to learn the basics, practice in simulation [...]

How to Calculate Options Leverage

Leverage is one of the reasons that people trade options instead of buying and selling stocks directly. How does options trading leverage work? First of all you can control a larger number of shares for less money on a call option than by purchasing the stock in question. And second, when [...]

How To Learn Options Trading

Learn options trading and you can profit from any market says How to learn options trading is to learn the basics of options and then deal with how to apply these basics to various markets and trading situations. The online guide to trading options at is a good place to [...]

Make Money Buying Options

For most traders the best practice is to make money buying options. You can make money buying options on stocks or commodity futures. And you can make money when you buy foreign currency options. Professionals make money trading options both by buying and selling. The fact is that those who [...]

Make Money Trading Options

Last week we wrote about writing stock options for income. This is one way to make money trading options. A common example is to sell a covered call option on a stock that is unlikely to go up in price. The other way to make money trading options is to buy [...]

Options Trading Vocabulary

To get a head start when you want to learn how to trade stock options you need to learn an options trading vocabulary. What are puts and calls? What is the difference between American style stock options and European style options? An options trading vocabulary contains such terms as in [...]

Difference between Options and Futures

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

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 [...]

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