Have you ever heard of “options?” If not, then you are sure to miss out on one of the most popular moneymaking techniques that even the experts use – the option advisory services. By buying and selling options to investors, an option advisory service gives you the opportunity the earn money the “experts’ way.” However, [...]
Conventional wisdom tells us to invest our hard earned money in traditional vehicles we are most familiar with such as stocks, mutual funds, and bonds. Since understanding the up and down nature of the stock market, its generally more comfortable for many casual investors. The fact is, options trading provides several advantages that many regular [...]
Finance is a complex science. The awareness of the concept of money and its profitable use is a necessary knowledge for everyone in the modern world. Without a proper knowledge of investment opportunities and financial strategies, individuals are bound to miss out on a lot of profitable ventures. Among the more common methods of profitable [...]
An options trading rolling strategy is a strategy where you move your strike point to a new strike point during the month. Rolling basically means moving. In the world of options trading, this movement happens when you move positions from one strike point to another. That can either happen when you move points vertically (within [...]
Trading options and investing in dividend stocks are two subjects that aren’t normally linked, but, by using a conservative option trading approach, selling covered calls, you can actually often double and sometimes even triple your yield on dividend paying stocks.
Selling covered calls is sometimes compared to taking out a limited insurance policy on your [...]
Many private traders deem that options are thought to be traded by experts with good mathematical skill. There are two reasons why many private traders think so, that are. trading options are too risky and difficult. Many private traders think that it is easier to just trade stocks or futures. So, a simple question, if [...]
Written on 15th February 2008 (see below for further updates)
I thought I’d provide an example of a Bull Call Spread (BCS) using the Commonwealth Bank as an example. There is a lot of volatility in the market at the moment. If you have studied my course then you will know that high volatility [...]
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, [...]
Options are contracts on an underlying trading instrument such as shares of stock, bonds, a commodity, a mortgage loan and many others. However, there are common features among all options. It does not matter if it is a share of stock or a mortgage loan; they all have certain things in common. [...]
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 [...]