To that end, we’re definitely fans of buying puts and calls, no matter what your level of options experience is. The potential for explosive returns without the need for betting the farm on each trade is unrivaled in the investing world. But we’re also fans of broadening our horizons and investing in options is [...]
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 [...]
You may have failed on your 1st chosen career but never lost hope in the 2nd one. If you are willing to adopt changes and learn then trading is the best alternative to consider as your next potential career. Many individuals have changes their career path and chosen trading. There are several kinds of trading [...]
Most beginners who are interested in trading options for the first time can find themselves quickly overwhelmed. Learning to trade options is an art that certainly takes time, effort, and determination. We know the learning curve can be steep, but we believe it’s well worth the effort. Here are some tips that will help you get started:
Getting To [...]
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 [...]
The options trading is the only kind of trading that is not very affected whenever the market goes down or sideways. That is why many investors think that this class of trading is the key to any trader’s success. Because of these reasons, many people are becoming option traders and the competition is rising. Reliable [...]
Any discussion of option trading strategies must address a simplistic form of options trading called binary options trading. Not too many investors know about this form of investment but it is a very hot market right now for people not willing to be stuck with long holding period investments such as stocks, bonds, mutual funds, [...]
Do you know how to STRANGLE stocks with options? Suppose, the market is expecting a big announcement. Something like the interest rate change by the FED or a sudden bankruptcy of a big investment bank or a corporation. This announcement is going to move the market big. You want to profit from this big move [...]
Construction of a vertical spread occurs with the purchase and sale of a call (put) in the same stock and in the same month. The only difference between the two options is the strike price. For example, an investor would construct a vertical spread by purchasing the IBM June 55-call while selling the June IBM [...]