Wednesday, June 23rd, 2021

Preserve Opportunity Both Ways with a Long Straddle

Options trading involves the purchase or sale of puts and calls on stocks, commodity futures, or currency pairs. Professional options traders commonly use any of a number of basic options strategies. The point of combining puts and calls, buying and selling is to hedge risk, increase the likelihood of profits, and leverage trading capital. In [...]

Stock Options in a Crisis

There always seems to be trouble in the world and it invariably affects the stock market. Many traders as well as long term investors choose to use stock options in a crisis situation. There are various options trading strategies but the use of stock options in a crisis is unique in that it can be [...]

Options Trading Software

In order to profit from stock option trading or trading options on Forex or commodities, traders need accurate information from their options trading software. First a trader must learn about the fundamentals that drive the equity underlying an options contract. Then he must effectively use options trading software for technical analysis of price patterns. There [...]

Options Trading Strategies

Options trading strategies vary according to the skill set and risk tolerance of the trader or investor. Those who buy options to hedge risk will take a different approach from a speculator who follows trends or trades in an established channel. Investors, day traders, and companies buying and selling commodities or various products internationally [...]

Profitable Options Strategies

Traders can use a number of profitable options strategies depending upon their risk tolerance and degree of expertise. Profitable options strategies also depend upon why one is trading options in the first place. Companies that buy and sell products across the world buy options to hedge risk. Currency speculators use a [...]

Employee Stock Options

Employee stock options can dilute the value of the stock of a company. The current example is the recent initial public offering by LinkedIn. The company went public last week. A concern going into the first day was that LinkedIn has a large number of employee stock options outstanding. This is common in Silicon Valley [...]

Crisis Options Trading

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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 [...]