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Articles about stock options trading (0-50 of 1292)

  • Stock Trading Options: Do Your Research Well
    By: Richard Nicholson | - Stock options trading can be much profitable in comparison to regular stock trades and investments. While investing, it is always beneficial to have a good amount of knowledge about the type of investment and associated risks. You should be careful about certain things when investing in Options.

    If you do not have enough information about the Stock Options, it is important that you do some research first. Buy a book or go to the seminars organized by stock trading companies. Technic ...

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  • Reap The Benefits Of Stock Options Trading
    By: Richard Nicholson | - Stock option refers to a deal between the buyer and the seller to possess a right to buy or sell shares or stocks at a certain price. It comes with an expiry date and the buying or selling must be done before that date. But thats not compulsory for you to buy or sell any stock unwillingly. So, the stock options trading is an altogether different type of trading where you can invest your money and do trading with it. These are traded and treated in stock markets just like any other type of sec ...
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  • Increase Your Wealth With Stock Options Trading
    By: Richard Nicholson | - These days making money is not that difficult if people are smart enough to use their minds in the right direction. Now, we do not consider hard working good and always wish to make fast money without much hard work. Due to this reason, a lot of people are now getting into the gamble of stock options trading. Stocks have always been a source to make huge money without much hard work. But now, more and more people are taking this up as their side business also.

    Now you may think tha ...

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  • Tax Tips For Traders
    By: Matt kaldor | - For the successful trader, the best tax advice is to incorporate.

    With the proliferation of online stock and option trading, traders are looking for tax advice on the best way to structure their trading business. This especially true for day traders, those people that produce most or all of their income from trading. An individual or sole proprietor cannot take advantage of the numerous tax advantages and asset protection strategies available to companies. In order to gain the ...

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  • Earn Huge With Stock Options Trading
    By: Richard Nicholson | - A lot of people are investing in options which are truly not a piece of cake. It includes a huge risk. The people who have been in this business and are true professional know exactly how to handle this work and work according to the situations of the economy. Although, it offers huge profits but the risk included in this trading is really very high and may even lead to bankruptcy. Therefore, it is very important that you have adequate experience and knowledge before investing in options and try ...
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  • Stock Options Trading - Some Basic Mistakes
    By: Nick Messe | - Stock options trading can be interesting, challenging and profitable.

    It can also be risky - especially if you are a new trader and are not familiar with how the process works. Here are some of the more common mistakes made by inexperienced traders.

    One of the most common mistakes is to begin by trading "out of the money" call options. A call option is a contract that allows you to buy a block of a certain stock at a specific "strike price" within a specified perio ...

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  • Stock Options Trading - How It Works
    By: Nick Messe | - Options trading offers a series of interesting and potentially profitable alternatives to regular stock trading. But before becoming involved in stock options trading it is very important to understand the basic concepts involved. Here is a partial list of some of the more important differences and similarities between regular stocks and stock options.

    The most obvious similarities are that like stocks, options are securities. A "security" is broadly defined as an investment contr ...

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  • Options Trading - Stock Options Trading - Options Trading Strategy 185
    By: optionstradingdomain | - Online stock market trading allows a person to be in touch with the latest stock market developments while sitting at his place. Even as options offer many investment benefits, they are not meant for everyone. Each options contract controls a block of 100 options on 100 units of the underlying asset. The reality, however, is that there are no keys that will find a winner every time. For a broker, Forex option trading consists of the most common option, which is the call/put option. Traders buy ...
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  • Stock Options Trading - Options Trading Charts - Put Options 911
    By: optionstradingdomain | - Public subscription is to be announced according to the laws of the stock market. The online stock trading is often low at its commission rates, thus allowing you gainful trades even if you invest small amounts. Just be sure that you don't invest money that you can't lose, take time to learn as much as you can about options trading, and then just give yourself time to become comfortable as a trader. This would give you a $500 gain [($35-$30) x 100 shares] from the purchase of 100 shares of Micro ...
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  • Stock Options Trading - Options Trader - Option Trading 783
    By: optionstradingdomain | - The other alternative is to find a reliable website that can do the comparison for you. There are many websites that can conduct a comparison on free online car insurance quotes for you. Summary - If you are totally set on getting Whole life insurance quotes, then that's your decision. The only requirement for this program is that you need to be fifty or older. This is a great savings option for those who know enough about life insurance to make decisions on their own. So if you really want to ...
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  • Stock Options Trading - Options Trading Research - How To Trade Options 641
    By: optionstradingdomain | - Basically, any item that can increase in value with the passage of time can be looked at as an investment. The success of this strategy will depend on 3 conditions:. There can be a rule on how much you have to withdraw at one time and how many withdrawals you can make by check per month. Art work, be it sculptures or paintings have an investment value. When the decision is announce the stock will most likely move dramatically in one direction. The closer the call options strike price to the cu ...
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  • Stock Options Trading - Options Trading - Future Trading Strategy 911
    By: optionstradingdomain | - Regardless of whether the stock market is going up or down, stock options can still be winners. This system is nice if you like to see profits, because you don't run the risk of a stock that's risen suddenly dropping again and wiping out your profit - you took your profit early. Careful consideration and sound money management techniques are a must for successful option trading. The most frequently asked questions (FAQs) are, what are the types of options trading products, how can people begin ...
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  • Stock Call Options - Options Trading Research - Stock Options Trading 670
    By: optionstradingdomain | - All but a scintilla of far out of the money options have any value at all upon their expiration date. How quickly these options express themselves is a measure of market volatility, and most options traders will try to take a neutral position - they'll put in put and call options to cover both directions, and to cover themselves against broad market trends. Events like earnings announcements can provide impetus for accelerated movement. Each options contract controls a block of 100 options on 10 ...
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  • Stock Options Trading - Options Trade - Stock Options Trader 048
    By: optionstradingdomain | - Additionally, they allow you to take part in market price movements without actually having to take on the underlying asset. After all, the prospect of making quick money is alluring. It is very important to understand all the risk factors, associated with all of them before choosing a suitable one. Brokers help individuals as well as institutional investors to establish their accounts for options trading. However, a proper understanding of the system is necessary to avoid losses. The large pr ...
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  • Stock Options Trading - Option Trading Quotes - Option Quotes 622
    By: optionstradingdomain | - Plus, you don't want to be the last to know when a major event happens. This system is nice if you like to see profits, because you don't run the risk of a stock that's risen suddenly dropping again and wiping out your profit - you took your profit early. "Mar" stands for March, so this option will expire on the third Friday of March 2006, which is next week. The information present is enough even for an inexperienced person to invest in the stock market. While a stock trader is look ...
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  • Social Web Results
  • Tweet Your Trade Shared By: rayjman - Open a FREE paperTRADE account with trade MONSTER™ to virtually "trade" stocks, covered calls, iron condors, and other complex options spreads.

  • Forex Trading PipCandy: Forum Shared By: PipCandy - Too many traders approach trading from a 2 dimensional standpoint and this goes for stock, options, futures, forex traders...you name it.

  • An Options Twist On Stock-Buyback Plans - Striking Price Daily - S. Sears Shared By: smsearsBarrons - Surprisingly, it turns out stock-buyback programs may create options trading opportunities. Goldman Sachs, which recently studied this issue, is...

  • Swing Trades Shared By: trader_paradise - Do not rely on statements made on... | trading | paradise | investing | stocks | stock trading | option trading | swing trading | program trading

  • FibMaster's Fibonacci Trading Videos Shared By: yoidownload - Fibonacci Trading for Stocks, Options, Futures, and Forex traders. Fibonacci Education For Traders This video course will teach you the same...

  • Options? Are You Nuts?! Shared By: TermLoan - Like, stock options? Seriously? I know that for many Fools, the idea of entering the options market is a daunting one. For me, for years, as a guy who...

  • Options Hawk Home Shared By: OptionRadar - The options market has consistently been a leading indicator of future price movement in stocks.  I have consistently been able to predict large stock...

  • Trading Paradise Market Mood Shared By: trader_paradise - Do not rely on statements made on... | trading | paradise | investing | stocks | stock trading | option trading | swing trading | program trading

  • Interview with the CEO of ING DIRECT Canada – Part I : WhereDoesAllMyMoneyGo.com Shared By: PreetBanerjee - Credit Repair - option trading - stock options trading You might like these Related Articles: Join over 1,000 readers who receive daily updates by...

  • High Frequency Trading on Twitter. Better Data. Better Trades. - HamzeiAnalytics, LLC Shared By: HamzeiAnalytics - Stock Index Options: $SPX & $NDX Equity, Credit & Commodity ETF Options: $SPY, $QQQQ, $IWM, $TLT, $TBT & $GLD High-Beta Equity Options such as: $GOOG,...


  • Option Strategy - Stock Options Trading - Put Options 051
    By: optionstradingdomain | - Options trading generally deals with trading treasury bonds, stock indexes and foreign currencies. Speculation in options trading is on the rise with the availability of technology and services. Stock Trading provides detailed information on Stock Trading, Online Stock Trading, Option Stock Trading, Stock Trading Systems and more. The OTCs are traded not in exchanges, but between two independent groups; hence these transfers are the bi-lateral contracts. As far as stock options are concerned, ...
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  • Options Trading Online - Stock Options Trading - Option Trading 622
    By: optionstradingdomain | - The open-outcry marketplaces are Philadelphia Stock Exchange (PHLX), American Stock Exchange (AMEX) in New York City, the Pacific Exchange (PCX) in San Francisco, and the Chicago Board Options Exchange (CBOE). Also, compare the fee charged by various investment sites before choosing one. The most basic and probably the most common is simply buying Puts and Calls. While a stock trader is looking for upward or downward movement, the options trader needs to pinpoint the degree of movement. You ne ...
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  • Stock Covered Call Options - Stock Options Trading - Option Quotes 622
    By: optionstradingdomain | - When is it used?The Covered Put Sale is used by investors for 2 reasons:. How to choose the Strike Price?The strike prices used will depend on how bearish an investor is. How to choose the Strike Price?The strike prices used will depend on how bearish an investor is. Discover how to protect your investments step-by-step video tutorials, articles, free and premium trading content which can be found at: When it comes to giving people the hope of becoming a millionaire overnight, the stock marke ...
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  • Options Trading Charts - Future Trading - Stock Options Trading 193
    By: optionstradingdomain | - The option call which you purchase at $50 for google is now worth $60.Therefore, you would have made. The closer the call options strike price to the current market price of the stock the greater the level of protection against a price increase, but the greater protection comes at a higher cost. There are many option strategies that one can employ and master over time. It is important to have a historical knowledge of the antique before purchase as this often helps in deciding its resale price. ...
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  • Option Trading Quotes - Option Spread - Stock Options Trading 051
    By: optionstradingdomain | - In addition to the payment mode, find out about the services provided by them, commission rates and the way they handle accounts. The brokers who offer this product are known as plain vanilla forex option brokers. The stock will be around a long time but an option has an expiration date. If the option is set to expire on Friday, then the trader must be prepared to deal with that timeline. Go back and read several to see what type of track record they have. In no way can an option buyer lose mo ...
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  • Options Trading Mastery: Rolling The Position
    By: Ron Ianieri | - 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 the closing out of a vertical call spread, we find there are three possible outcomes. The spread can finish out-of-the-money and valueless. For a call spread, this scenario occurs when the stock closes at or below the lower strike of the spread. In order to close out the spread, an i ...

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  • Options Trading Mastery: Getting Out Or Rolling The Position
    By: Ron Ianieri | - 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 in the selection and management processes.

    Looking at the closing out of a vertical call spread, we find there are three possible outcomes that must be addressed. The spread can finish out-of-the-money and valueless. For a call spread, this scenario occurs when the stock closes at or ...

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  • Options Trading Mastery: Vertical Spread Recap
    By: Ron Ianieri | - 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 put spread. Each of these two spreads allows for two positions, long and short.

    The long vertical call spread is constructed by buying one call option with a lower strike price while simultaneously selling another call option in the same month with a higher strike price. In a one to on ...

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  • Options Trading Lessons: Vertical Spreads
    By: Ron Ianieri | - There are two main types of vertical spreads. There is the vertical call spread and the vertical put spread. Each spread allows you to do two things. First, you can buy it, making you long the vertical spread. Second, you can sell it making you short the vertical spread. Both can be employed to take advantage of directional stock plays. When we use the term \'directional stock play,\' we refer to using vertical spreads to capitalize on anticipated stock movements either up or down.


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  • Options Trading Lesson: Spread Trading
    By: Ron Ianieri | - In options trading, there are some basic lessons that are the backbone of many other successful options trading strategies. How to engage in spread trading in options trading to enhance potential gains is one of these lessons.

    Spread trading is a foundational tool that you should have in your options trading toolkit. It will allow you freedom and flexibility for enhanced profit and will give you defense against potential loss while reducing your overall risk. Now, let us look ...

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  • Options Seller Risk/reward
    By: Ron Ianieri | - The seller of a time spread buys the nearer month option and sells the outer-month option in a one to one ratio.

    In order to profit from the sale of the time spread, the seller is looking basically for two things.

    First is a decrease in implied volatility. As volatility decreases, the out-month option (which the seller is short) loses money faster than the near month option (which the seller is long) because of the higher vega in the out month option. This will caus ...

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  • Options Buyer Risk & Reward
    By: Ron Ianieri | - Like most trades, time spreads have a maximum loss for the buyer. As a buyer, you can only lose what you have spent. If you paid $1.00 for the spread then your maximum potential loss is that $1.00. If you bought the spread for $2.00, then $2.00 is the maximum potential loss.

    The buyer of a time spread will be purchasing the out-month option while selling the nearer month option of the same strike in a one-to-one ratio. Since the out-month option will have more time until expiratio ...

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  • How To Calculate The Volatility Of The Spread In Options Trading
    By: Ron Ianieri | - To be able to calculate the volatility of the spread, we must equalize the volatilities of the individual options.

    First, let's move the June calls by moving June's implied volatility down from 40 to 36, a decrease of four volatility ticks. Four volatility ticks multiplied by a vega of .05 per tick gives us a value of $.20. Next we subtract $.20 from the June 70 option's present value of $2.00 and we get a value of $1.80 at 36 volatility. Now the two options are valued at an equal ...

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  • Properly Calculating Accurate Volatility Levels
    By: Ron Ianieri | - Understanding and properly calculating accurate volatility levels is imperative for spread traders. In order to get accurate volatility levels, you must first determine a base volatility for the two options involved in the spread.

    Getting a base volatility must be done because different volatilities in different months can not, and do not, get weighted evenly mathematically.

    Since they are weighted differently, you can not simply take the average of the two months a ...

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  • The Effects Of Volatility On The Time Spread When Trading Options
    By: Ron Ianieri | - When purchasing a time spread, the investor should pay attention not only to the movement of the stock price but especially to the movement of volatility.

    Volatility plays a very large roll in the price of a time spread and, as we have stated, the time spread is an excellent way to take advantage of anticipated volatility movements in a hedged fashion.

    Since the time spread is composed of two options, the investor should understand the role of volatility in options ...

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  • Introducing The Amazing Stock Repair Strategy
    By: Ron Ianieri | - Introducing the Amazing Stock Repair Strategy. This strategy involves buying one at-the-money call option while simultaneously selling two out-of-the-money call options on the same stock, in the same month.

    The construction of this trade is critical. First, you must make sure to purchase exactly the equivalent amount of at-the-money call options as shares of stock you own. Remember, each option contract is worth 100 shares. So if you own 500 shares, then you would purchase 5 at-th ...

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  • The Stock Replacement Covered Call Strategy
    By: Ron Ianieri | - Back in 2003, (October and November '03), the giant biotech Amgen (AMGN) came under some intense pressure, trading down about $12.00 before it found what appeared to be a decent level of support, and began to consolidate. At this level, anyone interested in going long Amgen at a discounted price would be advised to do so. Implied volatility was high coming off this precipitous drop, which caused premiums in the options to increase considerably.

    This scenario can be a very attracti ...

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  • Options Trading Lesson: Closing The Time Spread Position
    By: Ron Ianieri | - It is important to remember that the time spread will leave you with several potential positions that can be altered by other options or stock in numerous ways.

    There are a number of decisions you must make to clarify your understanding and goals. Being open to a number decisions can be a very good thing for the flexibility of your position, whether entering or exiting trades. In this example we'll look at the position you have and the ways you can make your decisions.
    ...

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  • The Collar Strategy For Effective Options Trading
    By: Ron Ianieri | - Another protective strategy that allows for some upside capital gain while providing maximum down side protection is the collar.

    The collar is a combination of the covered call and protective put strategies. The collar uses a long put position in coordination with a short call position along with a long stock position. The ratio is one short call, one long put (not of the same strike) and 100 shares of stock.

    As you remember, one contract is equal to 100 shares. The ...

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  • How Can Collar Strategy Be Leaned?
    By: Ron Ianieri | - Like other strategies, the collar can be leaned toward the investor's perception of the stock's direction and strength.

    Let's look at the potential leans that can be taken. Say that you have a very strong feeling the XYZ is going to go up. Instead of buying a put and selling a call with strikes that are roughly equidistant from the stock price, you would sell a call that is further out-of-the-money.

    This would allow more room for a larger increase in stock price bec ...

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  • Lessons In Options Trading Strategies - The 'roll'
    By: Ron Ianieri | - Rolling is defined in options as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.

    Other times, you may have to buy your short call back so that you will not lose your stock. Sometimes, you may even want to allow the stock to be called away if you have decided that the stock has reached a level were you want to take your profits and begin to look for another opportunity.

    The t ...

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  • Lessons In Options Trading Strategies - The Lean
    By: Ron Ianieri | - Professional traders use the term lean to refer to one's perception about the directional strength of the stock. When you own a stock and intend to hold it for a period of time, you are aware that you will probably be holding it while it goes up and while it goes down.

    This means that at any given moment in time, you might have a different opinion of the potential movement of that stock. Knowing this, there is a way to address your present level of confidence or 'lean.' You do thi ...

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  • The Protective Put Strategy
    By: Ron Ianieri | - As a reminder, a put gives an owner the right but not the obligation to sell a certain stock, at a specific price, by a specified date.

    For this opportunity, the buyer pays a premium. The seller, who receives the premium, is obligated to take delivery of the stock should the buyer wish to sell the stock at the strike price by the specified date. A strategically used put offers maximum protection against substantial loss.

    The Protective Put, also referred to as a 'ma ...

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  • Options Trading: The Protective Put Strategy In Different Scenarios
    By: Ron Ianieri | - As previously stated, when we buy a stock, three potential outcomes exist. The stock can go up, go down, or remain stagnant. Let's hypothesize results across these three scenarios. Say you buy the stock for $31.00 and buy the front month 30 put for $1.00.

    In the 'up' scenario, let's assume the stock price is $31.50 at expiration. The results are that you have a $.50 gain from capital appreciation and a $1.00 loss from the purchase of the put which combined gives us a $.50 overall ...

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  • Lesson In The “stagnant” Scenario Vs. The “down”
    By: Brett Fogle | - The “stagnant” scenario

    When we apply the covered call strategy to the stagnant stock scenario, we take a negative return scenario and turn it into a positive scenario. Remember, when we sell an option, we receive a premium for doing so.

    When the stock does not move during the option’s life, the extrinsic value of the option goes to zero. The amount of money paid for the option goes to the seller. We’ll take a look at how this sets up.
    ...

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  • Options Trading Strategies: The "up" Scenario
    By: Brett Fogle | - The “up” scenario

    In the “up” scenario, the maximum gain that can be attained is the stock finishing at $10.00 or higher.

    At $10.00, you would profit from the full value of the extrinsic value of the option which is $.50 and you would also have $.50 of capital appreciation from the stock for a total of $1.00. This represents a 10.52% one-month return or an annualized return of 126.32%.

    It is not realistic to expect this type of ...

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  • Time Decay Strategies For Options Trading
    By: Brett Fogle | - Time decay, also known as theta, is defined as the rate by which an option’s value erodes into expiration. The value of the option over parity to the stock is called extrinsic value.

    Since an option is a depreciating asset, meaning it has a limited life, the extrinsic value in the option will wither away daily until expiration. This “decay” is not a linear function meaning it is not equally distributed between all of the days to expiration.

    As the ...

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  • Advantages And Disadvantages Of At-the-money Option, In-the-money Option And Out-of-the-money Option
    By: Brett Fogle | - An at-the-money option has both advantages and disadvantages over stock and in-the-money options. First, the at-the-money option will be cheaper then both the stock and the in-the-money option. So there is less capital requirement and less total risk.

    Remember, when buying an option, you can only lose what you spend. The problem is the amount of extrinsic in the at-the-money option.

    In order for you to profit from buying an at-the-money option, you need the stock to ...

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  • Stock Options Trading: The 'lean'
    By: Brett Fogle | - Professional traders use the term "lean" to refer to one's perception about the directional strength of the stock. When you own a stock and intend to hold it for a period of time, you are aware that you will probably be holding it while it goes up and while it goes down.

    This means that at any given moment in time, you might have a different opinion of the potential movement of that stock. Knowing this, there is a way to address your present level of confidence or "lean." You do t ...

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  • In-the-money, Out-of-the-money, & At-the-money Trades
    By: Brett Fogle | - An option can be described by its strike price's proximity to the stock's price. An option can either be in-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM).

    An at-the-money option is described as an option whose exercise or strike price is approximately equal to the present price of the underlying stock.

    For instance, if Microsoft (MSFT) was trading at $65.00, then the January $65.00 call would an example of an at-the-money call option. Similarly, the ...

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  • Which Stock To Buy?
    By: Amanda Too | - Before we need to know which stock to buy, we need to know the fundamental of an individual companies and how they perform in terms of revenue, profits, assets, and borrowing.

    It is important to know about all these as the company's share price is ultimately the market's reflection of how valuable that company is. If a company is making profits and these profits are growing year on year, with borrowings contained to low levels and revenues also growing, then is an ideal company to ...

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  • Stock Options
    By: David A. Sorenger | - Stock options are a great way to leverage investment capital for speculation and to reduce the risk for existing stock positions in your portfolio or even to earn an extra riskless income.

    There are so many option strategies that whole books were written about this topic. Before you can think about mastering advanced option techniques, you must start exploring the basic option strategies first, the simple call and put option.

    What is a stock option, exactly? If you ...

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  • Mental & Emotional Biases In Trading
    By: Billy Williams | - Copyright 2006 Billy Williams

    Traders are typically very competitive and have been successful in another field before they come to trading stocks and options. It is very typical for successful attorneys to open a trading account with the intention of carrying that success into trading stocks or options.

    However, what often makes a person successful in another field does not translate into success as a trader. Often, the success they experienced before in whatever ar ...

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  • Trading In Different Time Frames
    By: Billy Williams | - Copyright 2006 Billy Williams

    This interesting article addresses some of the key issues regarding option trading. A careful reading of this material could make a big difference in how you think about option trading.

    Lets discuss time frames. One, there is the long-term time frame which one considers a time period months to years. Buy and hold investing or trend following typically looks at this time frame for their trades.

    Second, there is the inte ...

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