Wednesday, June 23rd, 2021

Stock Option Trading in 2014

In order to prepare for stock option trading in 2014 let us consider the events that are likely to occur and how they will affect markets. The long awaited reduction in the Fed quantitative easing stimulus program has begun. As a result interest rates are going up. To the extent that [...]

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 [...]

Options Trading Volatility

The talk these days in options trading seems to be all about volatility. Options trading volatility is nothing new. The prime reference for options trading volatility is the VIX. According to the CBOE web site, “The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed [...]

Picking Options

Picking options is like picking stocks in the stock market but more involved. In the stock market you can buy a stock or short a stock. In occasional options trading or if you are making a living trading options there is more to do in picking options. The first choice in picking options is to [...]

Options Trading Volume

Options trading volume varies with the belief that prices of underlying equities will fluctuate. For example, institutions that are writing puts in options trading may not believe that a stock or commodity price will fall but those buying puts do. It is not the change in price of the underlying that drives interest and increases [...]

Options on Gold

The United States economy is in recovery and the price of gold is sinking. The US Federal Reserve plans to cut back on stimulus spending which is driving up interest rates and driving down the price of gold. In this climate options on gold are probably a better choice than directly buying [...]

An Unconventional Guide to Options Trading

If you are new to trading options and are simply wondering how stock options work , here is an unconventional guide to options trading. We are not going to tell about how you earn tons of money trading options because many people do not. In fact, many people and institutions trade options in order [...]

Timing Options Sales

As we note in our article about timing options purchases, timing options sales can be as important as good fundamental and technical analysis. In fact, the point of analysis is to determine how low or how high and equity will go and when it will do so. The most effective use of [...]

Bull Call Spread Options Strategy

The bull call spread options strategy is an uncovered options trading strategy. The bull call spread options strategy involves buying and selling call contracts on the same stock, commodity, or currency with the same expiration date. Unlike a long or short straddle options strategy, which require picking contracts at the same [...]

Learn to Trade Binary Options

An interesting and potentially very profitable type of online options trading is the binary option. Learn to trade binary options and you gain if you correctly anticipate the market lose no more than the price of the option if your analysis turns out to be incorrect. Learn to trade binary options and not only is [...]

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