Developing a Stock Option Trading Strategy
February 5, 2010 by T.D. Thompson
Filed under Option Trading Tips, Options Trading, Options Trading Strategies, Options Trading Tips
Before leaping into any sort of discussion about the development of a proper or successful stock option trading strategy it helps to first accept one cold, hard fact – you must do the research. Without knowledge about the particular underlying asset you are fundamentally operating while blindfolded, or in other words, you are just guessing.
Naturally, [...]
What is an Options Trading Strategy?
January 18, 2010 by T.D. Thompson
Filed under Options Trading, Options Trading Strategies, Options Trading Tips
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 [...]
Short Options Trading Strategy
December 11, 2009 by T.D. Thompson
Filed under Options Trading Tips
In short options trading you can execute a short call option in which you promise to sell a stock at a given price if the buyer so chooses. In this case you do not own the stock and really hope that the stock does not go up in value. If the stock does not go [...]
