Profit from a Bumpy Stock Market

The stock market is in for another up and down stretch as the S&P 500 drops 600 points in early Monday trading. While investors worry when the market becomes volatile, options traders can profit from a bumpy stock market. CNN Business reports that the market is concerned about the increasing spread of [...]

Are We Going to See Financial Shock and Awe from Trump?

According to Reuters the Dow hits a record high as financial stocks rise. A new administration is in the wings and massive infrastructure improvements are promised. Are we going to see financial shock and awe from Trump?
The Dow Jones Industrial average opened at a record high on Monday, driven by [...]

How Does Consumer Confidence Affect Stocks?

In October of 2014 consumer confidence in the USA reached a seven year high. More folks are employed and new unemployment applications are the lowest in seven years as well. And, cheaper gas prices have put smiles on people’s faces as well. But, how does consumer confidence affect stocks? The rule [...]

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 [...]

Selling Call Options without Owning Stock

Options traders often profit from selling call options without owning stock. In this variety of uncovered options trading the trader believes that the price of the equity underlying the options contract will remain the same or fall in price. The trader receives a premium for selling the call contract. This is [...]

The Leverage of Trading Options

The leverage of trading options is perhaps its greatest attraction. With the simple investment of a premium a trader can nail down a price at which he or she will be able to buy or sell an equity, no matter high or low the price may go. The leverage of buying  and [...]

Fifty-Two Week Moving Average in Options Trading

Options traders can use the fifty-two week moving average to decide whether puts or calls are a better approach to trading a given stock. The fifty-two week moving average helps spot both support and resistance levels. The fifty-two week moving average or moving averages for longer terms also help you see [...]

Basic Options Trading Tools

A beginning options trader needs to obtain and develop tools and skills necessary for options trading. Today online options trading allows a trader to access markets from his own trade station, using sophisticated software, a fast computer, and a high band width internet connection. In order to make money trading options, traders need to study [...]

Use Puts to Preserve Stock Gains

A useful strategy for investors is to use puts to preserve stock gains. This approach can be used when the stock price is rising rapidly and when the price is volatile as well. How do options work in this regard? First, let us look at options contracts.
Puts in Options Trading
What [...]

Buy Calls to Lock in Opportunity

A beginning investor and trader may have great ideas but not much money. How can someone who understands the fundamentals and technical aspects of the market profit without a lot of cash. One way to profit from stocks when you do not have a lot of cash is to buy calls to lock in opportunity [...]

Next Page »