Tag Archives for " Options "
Foundations: Introduction to Stock Options
When it comes to stock trading, there are two main approaches; you can either buy a stock and sell it when it increases in value, or you can short a stock and take your profits as the price of the stock drops. In both cases, you are dealing with transactions of actual shares of a […]
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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 […]
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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, […]
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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 […]
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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 […]
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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 […]
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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 […]
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