Posted on 17 November 2010
Part II of this Guide focuses on the importance OPTION PRICING and how to use it for winning trades. The concepts we discuss can benefit you, whether you are an option buyer or option seller. Inside an Option’s Price Options are great tools for portfolio protection and speculation, particularly because of the great leverage they [...]
Tags: Market Direction, Option Contract, Option Contracts, Option Pricing, Option Strategy, Option Traders, Options Pricing, Options Trade, Portfolio Protection, Price Options, Stock Index
Posted on 15 November 2010
The Nature of Options Options can be traded on stocks, indices, and futures contracts. For simplicity sake, most of our discussion will focus on stock options. The definitions and strategies, however, are generally applicable to all. An Option is a contract that gives the purchaser the right, but not the obligation, to buy or sell [...]
Tags: Call Options, Derivatives, Futures Contracts, Option Contract, Option Trade, Options Exchange, Puts, Stock Options, Stocks
Posted on 08 November 2010
Introduction to Option Selling By Carley Garner, author of “Commodity Options” and “A Trader’s First Book on Commodities” Options offer traders an unlimited number of strategies with various levels of risk and reward. Unfortunately, many retail traders are stuck in a long option only “rut” and may not be aware of the potential flexibility offered [...]
Tags: Call Option, Commissions, Commodities, Commodity Options, Futures Price, Option Strategies, Option Trading, options, Retail Traders, Risk And Reward, Risk Management Techniques, Trading, Volatility