Posts Tagged ‘Options Trading’


Trading Options: Good or Evil?

You have probably heard people refer to options as a risky enterprise, akin to gambling. And it is true that options trading can be very risky, especially when engaged in with minimal knowledge and preparation. The average stockbroker or financial planner does not have sufficient options knowledge to guide you in the use of options [...]

Read More...

Options Trading Edge

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 [...]

Read More...

Options trading-Binary digital options trading

http://www.optionsbinary.com/Options Binary – Binary Options TradingThe simplicity of trading Binary Options •Binary Options contracts have long been available over the counter and were considered to be an “exotic” instrument, without any liquid market for trading themIn 2007 the OCC (options clearing corporation) has proposed a rule change to allow Binary Options trading followed by the SEC [...]

Read More...

Options Trading: Intrinsic Value and the Vertical Spread

An investor must always keep in mind that vertical spreads have an intrinsic value. This means it is possible to consider them ‘in the money.’ If a vertical spread has an intrinsic value, it can also have an extrinsic value. Unlike maximum intrinsic values that equal the difference between the strikes at expiration, maximum extrinsic [...]

Read More...

Options Trading Mastery: An Imaginary Spread Scenario

We are going to put together an imaginary spread scenario and set it in real life events. Consider that, in October, you begin to hear about IJK stock. It looks interesting, so you use a variety of sources to learn about it. (News, charts, outside analysts, Internet research, etc.) From your investigations, you decide that [...]

Read More...

Options Trading Mastery: Time Decay and Volatility Trading Opportunities

When vertical spreads are mentioned, they quite often come with monikers such as ‘bull’ and ‘bear’. This lends most to think of vertical spreads as directional plays which is true. However, vertical spreads can be used to take advantage of two other potential trading opportunities – time decay and volatility movement.If you are looking for [...]

Read More...