Wednesday, June 23rd, 2021

Trade War? Buy Options

The long-running bull market is starting to weaken. And now, President Trump seems bent on starting a trade war by putting tariffs on steel and aluminum imports. The market’s initial response is to head downward. Will there really be a trade war? And would a trade war hurt the stock market? If [...]

How Should I Start Trading Options?

With uncertainty in the stock market these days there is a lot of focus on trading options. If you are new to stock trading you may have been advised that by trading options you can limit your risk and leverage your trading capital. If you are interested, how should you start trading [...]

How to Trade Stock Options for Beginners

Options trading can be a profitable way to trade stocks and a way to limit losses as well. Options trading provides traders with a means of leveraging a small trading account into large gains. But in order gain profits in options trading you need to learn the basics, practice in simulation [...]

How to Calculate Options Leverage

Leverage is one of the reasons that people trade options instead of buying and selling stocks directly. How does options trading leverage work? First of all you can control a larger number of shares for less money on a call option than by purchasing the stock in question. And second, when [...]

How To Learn Options Trading

Learn options trading and you can profit from any market says How to learn options trading is to learn the basics of options and then deal with how to apply these basics to various markets and trading situations. The online guide to trading options at is a good place to [...]

How Soon Will the Chinese Stock Market Die?

Both the rise and fall of the Chinese stock market have been spectacular. The Shanghai Composite Index closed at 2,109 on January 2, 2014. On January 5, 2015 it closed at 3,350. And on July 17, 2015 it closed at 3,927, nearly twice its value of 18 months previous. The Chinese stock [...]

Make Money Buying Options

For most traders the best practice is to make money buying options. You can make money buying options on stocks or commodity futures. And you can make money when you buy foreign currency options. Professionals make money trading options both by buying and selling. The fact is that those who [...]

Interest Rate Put Options

With the possibility at hand that interest rates may fall, interest rate put options could be profitable. As with all options trading interest rate put options require a sound options trading strategy. Unlike trading options on stocks or commodity futures, trading interest rate put options do not have to do [...]

Make Money Trading Options

Last week we wrote about writing stock options for income. This is one way to make money trading options. A common example is to sell a covered call option on a stock that is unlikely to go up in price. The other way to make money trading options is to buy [...]

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 [...]

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