Sunday, May 20th, 2012

How Do Options Work?

It is possible to buy and sell options on various underlying equities on various exchanges such as the CBOE. There are options on equity securities, index options, debt options, foreign currency options. How do options work in these different arenas? In each case the options trader will either buy or sell [...]

How to Buy Stock Options

Learning how to buy stock options is a necessity for options trading. All options traders must read the document, “Characteristics and Risks of Standardized Options,” which is also known as the “Options Disclosure Document.” This publication of the Options Clearing Corporation provides detailed information as to how to trade options, [...]

Crisis Options Trading

Image by Getty Images via @daylife

Crisis options trading is emerging as European debt worries continue and investors ignore promising US job data. In times of great volatility and brewing crisis options traders tend to use strategies such as a long straddle where they buy both a call and a put on the [...]

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