Now, let’s consider stock and stock options for a moment. Consider the ubiquitous XYZ Corp., currently trading at $95 per share on 2/1/03. If you pay $4 per share for a March call on 100 shares of XYZ at the $100 strike price, you have acquired the right to buy 100 shares of XYZ for [...]
While everyone has a right to his or her opinion, the people who are informed have more of a right – BILL DIXON
My experience is that most people who trade options do not do very well. A major reason is that most option traders don’t know how options are priced. Without having a basic [...]
Review
For latest version of The Options Playbook please search in Amazon for The Options Playbook, Expanded 2nd Edition. Sixty pages of new content has been added to the original playbook. –Brian OverbyTradeKing Senior Options Anaylst and Author of The Options Playbook 1st and 2nd Edition
I think [...]
If stocks can be compared to five-speed automobiles, stock options are F-16 fighter jets. In order to qualify for an options account, you have to state your level of experience, candidly reveal your level of liquidity, and pretty much accept that it’s your fault if you go bankrupt.
There is a reason for this. You [...]
Review
“The best book on options I have ever come across.”- Alpesh Patel, best-selling author of “Trading Online “and “Mind of a Trader” “Incredibly well presented – actually makes you want to learn about options if you are a novice, and for the expert teaches you huge amounts [...]
Beginning options traders often make costly mistakes due to either a lack of knowledge or misinformation about the basic parameters of options and their exercise. Examples of common errors include being surprised that one is unable to close an index option position on the Friday before expiration, or being surprised by an unhedged option exercise [...]
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 [...]
Option the Home of Your DreamsThere are many ways to define the word “option”, however it has a specific connotation in the world of real estate. It means that there is an agreement between a seller and a potential buyer regarding the future purchase of a specific property. Real estate options are not often sold [...]
Puget Sound author Vincent Mountjoy-Pepka returns to fiction in this, the first episode in his seven-part Puts&Calls thriller. “You’ll be rich!”
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Trading options and investing in dividend stocks are two subjects that aren’t normally linked, but, by using a conservative option trading approach, selling covered calls, you can actually often double and sometimes even triple your yield on dividend paying stocks.
Selling covered calls is sometimes compared to taking out a limited insurance policy on your [...]