The recent stock market crisis (2008) took the stock market down by more than 30% in less than a year. This has a lot of traders thinking that big money can be made simply by buying put options on stocks that will move down with the market, especially high beta ones. Nothing can be further [...]
All stock market multi millionaires must be able to profit under any kind of market conditions. If you are able to profit only when stock markets go up, then you will find it a gargantuan task to ever have any sustainable success, much less become a stock market millionaire.
Yes! It is possible and easy to [...]
The only explanation which would seem acceptable is no one has shown you how to perform this marvel of printing money before, so you are a bit unsure of how to go about doing so!If this is your situation, then you are excused…But if not, you are truly missing out. Even if you are in [...]
If you buy an option, thereâs a 90% chance it will expire worthless – therefore, the person who sold the option to you has a 90% chance of success.
Most traders donât consider selling options, as they see it as too risky – but the odds of success are high, and if you do it correctly, [...]
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 [...]
If you have ever placed any bets, you would know that the person who wins most of the time is the bookmaker. Do you know that you too can be a “bookmaker” in the options market by writing put options? Not only can you play “bookmaker” by writing put options, you are actually also playing [...]
Does a story about Option Selling and Option Pricing interest you? I know some of you will say no, but to ones who are businessmen or traders in options trading will find it important. That’s why some of you may concern. I have a reason to continue my work. Yes, since it’s needed, I’m going [...]
Professional traders use the term “lean” to refer to one’s perception about the directional strength of the stock. When you own a stock and intend to hold it for a period of time, you are aware that you will probably be holding it while it goes up and while it goes down.
This means that at [...]
Time spreads can be a profitable investment strategy if you understand the concept of time decay. A time spread is designed to take advantage of the fact that an options decay curve is non-linear, that is, an option’s value does not decay evenly over time. As an option gets closer to expiration, its rate of [...]
Options are basically a form of security that you can purchase and then trade with on the markets. Normal stocks are used in their consideration.
A lot like future trading, options give you a right, but do not oblige you to buy the underlying stock against a predetermined price and specific time in future. You make [...]