Posts Tagged ‘Asset Allocation’

How to Trade Options – Diversified Trading Stock Options but Still Suffering Concentration Risk

Posted on December 19, 2009, 2:27 pm, by admin, under Option Trading.

Applying a more complete definition of diversification can help retail option traders diversify their portfolio profitably, beyond equities.A buddy started online options trading from home, in the last 6 months. He was trading a mix of Verticals, Calendars and Iron Condors using highly liquid Indexes but was failing to get consistent profits.  Naturally, I asked, [...]

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Options Trading Strategies – Intermarket Analysis in Brief for Retail Asset Allocation

Posted on December 15, 2009, 12:55 pm, by admin, under Option Trading.

If you are trading a mix of Verticals, Calendars and Iron Condors across highly liquid indexes like the DJX, DIA, MNX, QQQQ, RUT, SMH, SPY and XSP, is your trading risk adequately diversified? No.In choosing the MNX, QQQQ, SMH, SPY and XSP, there is a duplication of stock components in these Indexes: for example, AMAT [...]

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