Wednesday, June 23rd, 2021

Selecting Profitable Options

Options trading volatility is commonly the key to success in selecting profitable options. It is obvious that the best options to buy are commonly the cheapest and that the best options to sell are those that have changed greatly in price from when they were purchased. But in selecting profitable options [...]

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 [...]

Leasing Cell Tower Sites

A profitable business opportunity is leasing cell tower sites. Owners of property such as tall buildings or high altitude terrain may be approached by cell phone companies. Phone companies need to place their signal relay stations in high locations. Because of the large number of sites required for a cell phone [...]

Buy Cell Tower Leases

A potentially very profitable business venture is to buy cell tower leases. Cell phones are part and parcel of everyday life. The relay points in the cell phone network, the base receiver stations, are essential to smooth functioning of the mobile phone network. These base receiver stations are located at strategically [...]

Vanilla or Exotic Options

Which are better to trade, vanilla or exotic options? We define an exotic options contract as one that includes complicated business arrangements or structures as part of the bargain. Vanilla options contracts are all of the rest. In looking at vanilla or exotic options we are not differentiating European style [...]

Trading Compound Options

An options trading style similar to the Russian dolls that nest inside one another is trading compound options. Trading compound options is trading an option on an option. In trading compound options there are two exercise dates. As with trading European style stock options the first contract is only exercised [...]

Trading Capped Style Options

Trading capped style options provides options sellers with a limit to their downside risk while putting a cap on potential profits for a seller. In theory, one can engage in trading either American style options or European style options while trading capped style options. Capped style options act like a circuit [...]

Trading Asian Style Stock Options

Not much used in the USA, trading Asian style stock options, offers a unique approach to averaging risk and reward in stock options trading. An Asian style option is unique in that the payment for the buyer, should he or she choose to execute the contract, is determined by the average [...]

Trading Bermuda Style Options

An options style that falls halfway between American style stock options and European style stock options is trading Bermuda style options. Trading Bermuda style options happens with stocks, futures, and, especially, interest rate swaps. How does it fit “halfway” between the other two styles? One can execute American style stock options [...]

American Style Stock Options

Trading American style stock options is not a matter of Americans being patriotic. It is a matter of adding value to the options that you buy. The extra value of American style stock options over European style stock options is that one can execute American style stock options at any time [...]

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