The New York Stock Exchange (NYSE) matches buyers and sellers of stocks. An auction system, high buy and low sell being matched by Specialists. Trades taking place when the two agree on price, one coming to the other.
Market orders mean agreeing to the best price at that moment in time. The moment in time [...]
In option trading, there are many option strategies you can use. There are two basic options: call option and put option. Call contract will give the holder the right to buy an asset at a specific price or strike price. Put contract is the opposite. It gives the right to sell an asset at strike [...]
“Are you, nuts?! You want me to risk part of my savings trading options? This whole covered calls idea sounds like just another one of those crazy options strategies that sound great, but don’t deliver in the end.”
My pal was a normally a mild-mannered sort – very reflective, always weighing the consequences rationally before [...]
Introducing: Delta
Options are complex! Their value being determined by a long mathematical equation, with many sub-equations and variables. I can’t write the formulas out for you. Not because they’re secret, but because my keypad doesn’t contain the crazy looking symbols used in the formulas.
Each aspect of option pricing is a separate component of [...]
Some stocks went up. (Hopefully yours.) Some stocks traded lower. Some stock prices stayed the same. (A few flat lined dead on arrival, many roller coasted up and down back to the starting point.)
I was just recently in Las Vegas, for business of course. I enjoy going by the gaming tables. Market research, crowd [...]
Any Car Racing Fans Out There? Stock Car Race Fans? Drag Race Fans?
I like to think of Stock trading like Stock Car Racing. (Convenient?) Your car races the track at a constant 100 mph. (Delta of 1.00) As long as you don’t spin out and hit the wall, (drop in price) or take too [...]
Episode I.
Is there a Trekkie out there who can help me out? I understand the Black-Scholes option pricing formula, but I just can’t comprehend Star Wars.
People with tents sleeping in line waiting to buy tickets to a movie. Not just any movie, but a movie that’s playing everywhere. Multiple theaters, gobs of seats, [...]
Options have become a popular investment in recent years. You can make more money than stock if you done it the right way. There are many options strategy you can use. The basic one is call option and put option. Option is a right to sell or buy an asset at a specific price or [...]
My recommended option books:
The Bible of Options Strategies. The book covers all of today’s best income, volatility, synthetic, and sideways market strategies. It will show you why each strategy works, an when and how to use them. The book is written by Guy Cohen who has lots of experience on both the US and [...]
Some of the most profitable investment tools accessible to traders today are stock options. The vast majority of people are reluctant to explore option trading for fear of the fact that they might be too risky. Most stock market investors like stocks, because they believe them to be safer than most other investments. Those individuals [...]