Option as a strategic investment is fast becoming the choice of many. The benefits that option trading offers are many and we shall discuss the same here. Option trading having many benefits it is actually a wonder as to why it was not a sought after means for investment for so long.
1. Option trading is [...]
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 [...]
Have you ever lost money trading stock options?
Chances are good that you tried to apply the 3 trading horizons of stock trading to options trading and then got yourself hurt real bad.
There are 3 time horizons or what we call trading horizons in stock trading and they are; Long Term, Mid Term and Short Term. [...]
The recent stock market crisis (2008) not only rocked the financial system and the world economy but also the pockets of countless options traders all over the world. Options traders who used to profit in the years prior to this market crisis broke their bank as none of their options strategies seem to work in [...]
When venturing into the options market, the best way to get the lay of the land is to be acquainted with at least some of the more elementary concepts. These will aid the new investor in successfully executing basic trading strategies.
Two basic terms, the call and the put, are the epicenter of the trading [...]
Like futures trading, an option gives a trader the right, but does not obligate him, to buy the underlying stock at whatever the specified price on a preset time in future.
You make profits if the stock value ends up higher than what you purchased at. On the flip side, if the prices drop, then you [...]
The stock market is down, yet options activity is up. That means that many are finding themselves taking control of their assets and getting into the Wall Street game of leverage. Leverage can provide great opportunities for many looking to increase their returns and hedge against market risk. Unfortunately, with the wave of options activity, [...]
After reading the book “Rich Dad Poor Dad” by Robert Kiyosaki, I came to realize that not only is there a rich and poor path in life but also a rich and poor path in options trading as well. Many options traders experience defeat in their options trading career, especially during the first few months, [...]
To the average citizen, the stock market itself denotes something quite mind-bogglingly complex. Of course, options trading simply makes the merely complex truly confounding to such individuals. Providentially, the modern world is all about making complex things simple and this process has been aided effectively by the internet. Options trading is no longer as remote [...]
Most people lose money in a bear market. Do you remember the tech bubble and recession in 2000-2002? This article will discuss three option trading strategies that can make you big profits in a bear market or recession.
Option Strategy No. 1 – Buying Put Options
It is fairly easy to purchase put options. This option trading [...]