Wednesday, June 23rd, 2021

Stock Options in the Era of Covid-19

June 17, 2020 by Jim Walker  
Filed under Options Trading Education

In general, stock option traders are looking for short to medium term profits. Or they are looking to pick up an excellent long term investment for cheap. Trading options can be quite profitable in a volatile market such as we see today during the covid-19 pandemic. First, the stock market crashed [...]

Stock Options in a Crisis

There always seems to be trouble in the world and it invariably affects the stock market. Many traders as well as long term investors choose to use stock options in a crisis situation. There are various options trading strategies but the use of stock options in a crisis is unique in that it can be [...]

Basic Options Strategies

In trading options, a trader seeks to anticipate price changes of underlying stocks, commodities, or currency pairs. He or she buys or sells options contracts with the expectation of profit. In doing so the trader uses any of several basic options strategies. In trading options the buyer can purchase a call contract. In doing so [...]

What Are LEAPS Options?

An options trader may wish to trade with a longer timeline than with regular options contracts. In this case he or she may choose LEAPS options. What are LEAPS options? LEAPS is an acronym. A Long Term Equity AnticiPation Security is an option with longer term until expiration than other options. [...]

Stock Option Trading

Both long term investors and day traders engage in stock option trading. In each case stock option trading allows one to hedge investment risk and provides leverage of investment/trading capital. A long term investor will buy calls to lock in opportunity on a promising investment. Or he may buy puts in order to protect [...]

US Options Market

The US options market is currently rife with rumors. For example, calls on US Steel are up after the American steel maker pulled out of a steel maker conference and canceled a scheduled visit by an analyst to one of its mills. The largest integrated steel producer still buys most of its iron ore and [...]

Employee Stock Options

Employee stock options can dilute the value of the stock of a company. The current example is the recent initial public offering by LinkedIn. The company went public last week. A concern going into the first day was that LinkedIn has a large number of employee stock options outstanding. This is common in Silicon Valley [...]

What is Options Trading?

What is options trading useful for in today’s volatile markets? Markets react to significant events such as a civil war in oil producing regions of North Africa or the earth quake and tsunami in Japan. By purchasing options on stocks or commodities a trader is able to guarantee himself the opportunity for profits if a [...]

High Options Trading Volume

  Last month markets saw high options trading volume, the highest ever. International events sent traders in all markets looking for ways to protect capital while still earning profits. Succeeding in options trading depends upon an accurate reading of stock prices, commodity prices, and futures prices. When there is high options trading volume it is [...]

Interest Rate Option Trading

March 5, 2010 by T.D. Thompson  
Filed under Options Trading Tips

Image via Wikipedia

The Chicago Board Options Exchange (CBOE) offers interest rate option trading. CBOE describes interest rate options as “European-style, cash-settled options on the yield of U.S. Treasury securities.” This is one of the kinds of options trading that deals solely in projected interest rates. These options trade in U.S. [...]

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