Most average investors buy and sell stocks thinking that is the only way they can make money in the capital markets. Trading options on those same stocks gives everyday investors opportunities to get a “bigger bang for the buck,” meaning that you can make more money by trading options on the same [...]
Any time you read anything about options, it is incumbent upon the author to provide a brief introduction. This article is no exception.
Let’s suppose you are house shopping, but are waiting to hear whether or not the job you are hoping for is actually going to be offered. You find the perfect house, but you [...]
Owning stock has only two, maybe three, possibilities. The stock goes up. Or the stock goes down. Or, as a third possibility, it does a little of both. If you buy a stock, all you want it to do is go up.
If you sell a stock short or close a position (or consider buying it [...]
In this article I want to describe the basics of options: what they are and how one can trade them.
Options trading is extremely popular and provides far greater possible returns than does trading in the underlying stocks. But it also carries more risk.
So it is extremely important to understand how options work as financial instruments [...]
Options are riskier to trade than stocks. That’s fairly well known. And we’ll get into why.
Since options have an expiry date the investor has to make a choice within a relatively short time frame. This adds risk and complexity to the trading scenario.
Also, since options are derivatives, they have no inherent worth. Their value is [...]
The amount of stock options being traded in America is exploding! This is great news because there is far greater liquidity in the options market and many more money making opportunities for individual traders just like you. During the next ten weeks I will be writing articles on how you can profit from one of [...]
Review
” Guy Cohen is the master when it comes to taming the complexities of options. From buying calls and puts to iron butterflies and condors, Guy explains these strategies in a clear and concise manner that options traders of any level can understand. His chapter on options [...]
“Jeff’s analysis is unique, at least among academic derivatives textbooks. I would definitely use this material in my derivatives class, as I believe students would benefit from analyzing the many dimensions of Jeff’s trading strategies. I especially found the material on trading the earnings cycle and discussion of how to insure against price [...]
Forex options are calculated with ‘Greeks’. A basic explanation of these ‘Greeks’ will help you understand how and why the forex options move and behave in a certain way. An option is a derivative and how it’s value is derived is from a formula that combines these Greeks together. The Greeks are how these options [...]
In the Forex World, Forex is the largest financial Foreign Exchange market in the world. Different from others market like stocks or commodity, The Forex open 24hours, Monday to Friday 24/5 weekly. And it has an average of 3.2 Trillions trade everyday. As for now, it is a good time to go into Forex market [...]