Tag Archives for " Options "
An Overview of Options
Options are perhaps best thought of as the name implies, as a tool which gives their owner options. Since the market has both buying and selling activities, we also have options associated with each transaction:Options that give you the right to buy are named Call Options.Options that give you the right to sell are named […]
Read More
The Hidden Danger of Buying Call Options
Options are relatively simple to learn and extremely exciting from which to profit. Unfortunately, they also come saddled with a couple secrets most traders never take time to understand in the shape of implied volatility and vega. Now, imagine you are sitting at your computer looking over your stock portfolio. As you sit there, you check […]
Read More
Lower Your Risk with Stock Options
Stock options are a great tool for many outcomes. We can use them to get better leverage on a trade, create more consistent profits, bring in cash during a stagnant market, hedge positions, and the list of uses goes on.Let’s Look At SPYIt’s easy to look at a trade like this SPY trade and think, […]
Read More
Supercharge Your Trades Selling Options
Opinions can be quite polarizing, particularly in the world of trading. When it comes to options, there are those who believe options should be traded and those who believe they should not. It’s just the way things are! For the most part, option traders are convinced options provide the best opportunity to make a large profit […]
Read More
The Good, the Bad, and the Ugly Truth about Options
Most active traders have heard fantastic tales of how such and such trader used stock options and made 300% or more in just two weeks. These stories are common among option traders. However, just as common are the stories about people who bought a stock option and lost everything. The result is a fairly divided set […]
Read More
Why Do Stock Options Seem So Risky?
When it comes to the subject of stock options, we are often met with heavy resistance. For many people there is a sense of fear trading stocks options as they are perceived as being risky. However, the bottom line is stock options are a decaying asset which essentially means they are time-sensitive investing instrument which […]
Read More
Why Did My Stock Go Up and My Call Option Go Down?
Have you ever bought an option, watched the trade go in your direction, up for a call option and down for a put option, then noticed your option went down in price? How could this be? There are a few situations which could account for this happening.Time DecayAs an option trader, we understand options run […]
Read More
Trading Options, Are You Set Up to Fail Before You Start?
Trading options is one of the most efficient ways trade the market. The built-in leverage options provide allows a trader to lower their capital requirements, decrease their risk, and increase their ROI. However, while options do provide great leverage and are a very flexible instrument for trading, they are not always a walk in the […]
Read More
How Options Can Lose Money, Even When You’re Right!
Have you ever bought options, watched the stock do exactly what you expected, and gone back to sell only to discover it is now worthless? Option pricing can be a bit complicated and as a result, can sometimes leave traders feeling a bit frustrated by the fact they just lost money on a trade they […]
Read More
Four Option Trades You Can Master
When most people think about stock options, they immediately think one word: Complicated. Then the next word they tend to think is risky. There is truth to the idea that stock options can be complicated, and when things get more complicated, they tend to become a bit risky. However, there is also value in learning […]
Read More