Options Trader

So, you want to make money trading options. Then you need to develop the knowledge base and skill sets of an options trader. If you are already a stock trader you should realize that there a difference between stock and options trading. However, each type of trading requires fundamental and [...]

Trading Options

Trading options can represent the best as well as the worst of trading. Trading options can allow the investor to make great profits. It can also lead to disastrous results if he or she doesn’t stay with a proven trading plan. No matter what you know, it is always good to have [...]

Options in a Stock Split

What happens when you have purchased calls on XYZ Company and their stock splits? Options in a stock split also split, so to speak. Many traders believe that the resulting bump in stock price that occurs with a split is beneficial to those who have purchased call options or sold put options. [...]

Premium and Risk in Options Trading

Premium and risk in options trading go hand in hand. The premium that an option buyer pays conveys the rights of the option. The premium is set by the market and is not a standardized term or condition of the option. It is a payment in full for the right but [...]

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 [...]

Options Trading Volatility

The talk these days in options trading seems to be all about volatility. Options trading volatility is nothing new. The prime reference for options trading volatility is the VIX. According to the CBOE web site, “The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed [...]

Trading Options on a Government Shutdown

Times when the stock market is volatile are commonly good times for stock options trading. Now as political infighting in Washington drives us closer to a government shutdown the markets are volatile. Buying puts or calls on stocks may be quite profitable. The rationale for trading options on a government [...]

Timing Options Trades

Timing options trades is to a degree a contradiction in terms. After all one buys options in order to have the opportunity to buy or sell an underlying equity at the time of one’s own choosing. However, an options series has a starting date and it has an expiration date. If you [...]

Trade Japanese Stock Options

An effective means of trading stocks in the current Japanese economic recovery may be to trade Japanese stock options. The economic policies of Japan’s current Prime Minister, Shinzo Abe, have led to a fall in the value of the Yen, a rise in exports of now-cheaper Japanese goods, increased consumer optimism and spending, and a [...]

An Unconventional Guide to Options Trading

If you are new to trading options and are simply wondering how stock options work , here is an unconventional guide to options trading. We are not going to tell about how you earn tons of money trading options because many people do not. In fact, many people and institutions trade options in order [...]

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