Thursday, May 28th, 2020

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, [...]

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 [...]

Profitable Options Strategies

Traders can use a number of profitable options strategies depending upon their risk tolerance and degree of expertise. Profitable options strategies also depend upon why one is trading options in the first place. Companies that buy and sell products across the world buy options to hedge risk. Currency speculators use a [...]

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