Wednesday, June 23rd, 2021

What Are the Risks of Trading Options?

You can make money trading options and you can also lose your trading capital. What are the risks of trading options and how do you avoid them? The Options Industry Council discusses the benefits and risks of options trading.
Most strategies used by options investors have limited risk but also limited profit [...]

Options Trading Strategy

Profits from trading options are directly related to a well thought out and executed options trading strategy. Whether this is a short options trading strategy when selling options or the use of long options trading to enhance profits on a stock that you own, sound analysis and careful attention to market [...]

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 [...]

Understanding an Options Trading Strategy

Do you know what an options trading strategy is? If you work with a broker and have an investment portfolio then you may want to take some time to understand this concept. Just like the rest of the financial market, the options trading industry requires the investor to have an understanding of current conditions, the [...]

What is an Options Trading Strategy?

In options trading, a trading strategy involves establishing more than one position on the underlying stock and possibly holding the stock itself. An options trading strategy is used to reduce risk or to increase the chance of gain in options trading. One options trading strategy is buying both a put and a call on the [...]

Long Options Strategy

December 21, 2009 by T.D. Thompson  
Filed under Options Trading Tips

In general, a long options strategy minimizes risk and presents the potential for substantial profit. For example, long calls and long puts will only cost the price of the premium if they do not work out but will pay handsomely if, in the case of a call, the stock rises in price, or, in the [...]