Articles related to: Options Trading
1: Learn And Understanding Options - Basics
In order to understand what options are and how they work, we need to understand some of the terminology surrounding options. An option is basically a contract that gives the holder the right (i.e. ca..
2: Options trading edge
Many private traders deem that options are thought to be traded by experts with good mathematical skill. There are two reasons why many private traders think so, that are. trading options are too risk..
3: Option Trading - As Risky As The Reputation?...
Options Trading has a reputation for being extremely risky, but this reputation is in large part undeserved. True, option trades are extremely risky - even dangerous if you have no idea what you are d..
4: Stock Trading - Double Your Discipline in Three Simple Steps
Pick up any book on stock trading and you'll find that discipline is an absolutely critical element of profitable trading. This particular aspect of stock trading is also one of the biggest obstacles..
5: Options Trading Mastery: Spread Prices
Vertical spreads will trade between its minimum and maximum values - zero and the difference between the two strikes. In the case of a vertical call spread, the spread will trade closer to zero when t..
6: Options Trading Lesson: The Butterfly
I am sure many of you have heard of a sophisticated sounding strategy called the Butterfly. For some reason, it seems to be the darling strategy of many of those 'teach-you in five hours' type option ..
7: Options Trading Lesson: Seller Risk & Reward
The seller of a time spread buys the nearer month option and sells the outer-month option in a one-to-one ratio. To profit from the sale of the time spread, the seller must look for two things. The fi..
8: Options Trading Lesson: Volatility
To get a firm grasp of volatility's effect on vertical spreads, let us examine three spreads against different implied volatilities while keeping the stock price constant at 67.5. These are the 60 - 6..
9: Options Trading: Intrinsic Value and the Vertical Spread
An investor must always keep in mind that vertical spreads have an intrinsic value. This means it is possible to consider them 'in the money.' If a vertical spread has an intrinsic value, it can also ..
10: Options Trading Mastery: Rolling the Position
The selection and management of a vertical spread are only two-thirds of the game. Closing out, rolling or morphing the position has to be analyzed and executed with the same due diligence.Looking at ..
11: Common Scams Directed At Consumer Investors
With the advent of online brokers, many individuals are placing themselves in the driver's seat for purchasing stocks and bonds. The process requires a lot of research and little luck. A quick searc..
12: Options Mastery Lesson: Straddles
In our previous reports, we discussed option strategies that feature the use of options in combination with stock such as the buy-write and the use of options against each other in the form of spreads..
13: Options Trading Mastery: Construction & Value of a Vertical Spread
Construction of a vertical spread occurs with the purchase and sale of a call (put) in the same stock and in the same month. The only difference between the two options is the strike price. For exampl..
14: Choosing the Broker That is Right for You and Your Money
In order to ensure overall positive achievement with stock trading, it is highly important that a stockbroker is chosen to help you achieve your investment goals. A stockbroker is a professional pers..
15: Options Trading Lessons: Using Base Volatility
Spread traders must understand how to properly calculate accurate volatility. In order to get accurate volatility levels, you must first determine a base volatility for the two options involved in the..
16: Examples of the 'Collar Strategy' in Options Trading
Let's take a look at how the strategy works with this position. For the sake of our illustration and to make our calculations easy let's establish the collar using the December 27.5 put and the Decemb..
17: Options Trading Mastery: Effects of Volatility on the Time Spread
When purchasing a time spread, the investor should pay attention to not only the movement of the stock price, but also the movement of volatility. It plays a very large roll in the price of a time spr..
18: Options Trading Mastery: Factors that Affect Straddle Prices
Since the Straddle's profit potential depends on its price from purchase time to expiration, the investor should be aware of the factors that affect the Straddle;s price. Several factors affect a Stra..
19: Factors that Affect Strangle Prices
Since the Strangles' profit potential is dependent on its price from purchase time to expiration, the investor should be aware of the several factors that affect the Strangles' price. Stock PriceThe f..
20: Buy to Cover Orders with Stock Trading
Within the buy to cover orders, there are 4 options in which to place onto your stock purchases. When you buy to cover on a market order, you are in agreement that you will purchase the stock at the ..
21: Options Trading Mastery: Getting Out or Rolling the Position
The selection and management of a vertical spread are only two-thirds of the game. Closing out, rolling or morphing the position has to be analyzed and executed with the same due diligence as was used..
22: Bracketed Orders in Stock Trading
If you are planning to buy stocks as a long term investment you might want to consider placing a bracketed order on it. A bracketed order goes one step further than a trailing stop order. Rememberin..
23: Options Trading Mastery: Time Decay and Volatility Trading Opportunities
When vertical spreads are mentioned, they quite often come with monikers such as 'bull' and 'bear'. This lends most to think of vertical spreads as directional plays which is true. However, vertical s..
24: All-or-None Orders in Stock Trading
If you are an investor who relies heavily on penny stocks, the all-or-none order (AON) is extremely important. The AON order works to safeguard your purchase by providing the guarantee that you eithe..
25: Options Trading Mastery: Vertical Spread Recap
Vertical spreads can have various names. The same vertical spread could be called several different things by several different people. We have used two terms only: vertical call spread and vertical p..
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