Monthly Archives: December 2011
Option Trading Software
Options Trading Software & Systems: Options trading systems are as different as the traders that use them. The main idea behind using an options trading software or system is to find the trade that is the most likely to make you money. While each one has its own way of determining which options have the…
Covered Calls
Buying a stock and selling calls at a strike price above the price at which you purchased your stock or the current stock price. This is commonly regarded as the safest of the options trading strategies. If one is taking a position in a stock for the long term, selling options is a way to…
Options Trading Strategies
Common Options Trading Strategies The Covered Call- This is a very common trading strategy used by options traders every day. The concept is pretty simple: Buy stock and sell it for more than you paid. Here’s how it works: You, the investor, purchases 100 shares of a stock that you know will either maintain its…
Options Trading Glossary
Options Glossary: Common Options Terminology In order to trade options effectively, you will need to understand some basic terms before you get started. • American Style-An option that can be exercised at any time until the expiration date • At the money- An option where the underlying investment has reached the strike price. • Buy-Write…
Option Trading Risks
Risks of Options Trading Trading options is risky and should not be traded by inexperienced traders. The main reason is because the risks are non-linear in nature and depends on a variety of factors beyond the value of the underlying security. Reducing the amount of risk you take on when trading options stem losses, but…
Binary Options Trading
Binary Options Trading: Binary options are a specific type of option that pays a specified amount if the option is exercised “in the money”. However, if the option expires “out of the money” the investor gets nothing. These are often referred to as all or nothing options or fixed return options. Here’s how they work:…
Learn Options Trading – Courses
Learning the basic concepts around options and options trading is important. Options trading can be confusing without a grasp of the basics. There are several good options training courses and educational material available to help you learn the basics. A well designed options trading course can be a could investment if it helps you avoid…
