Alexander Chong

The Role of the Options Buyer and Seller

The person, who sells option contract to the option buyer as his opening trade, is also known as option writer, seller or granter. Opposite trade to the option buyer is taken by the option writer. Because of this, he or she has the counter risk profile of... Read >

What is option and how to trade it?

Options are like insurance policies because they share many same characteristics. The difference between options and insurance policies that can be seen is their purpose; option and insurance have difference purpose. Both of them are used for different p... Read >

The differences between insurance policy and option contract

Options are attractive to the private trader due to their special advantages. By buying options, you are given the opportunity to participating in the market with limited known risk. Besides, the capital that you need to invest is just a small fraction of... Read >

Buffett’s Value Investing Style

Warren Buffett is the world famous stock market guru. Recently, he bought stakes of General Electric Co (GE) and Goldman Sachs Group. General Electric Co (GE) is a technology and services giant company which is listed in Dow Jones board; whereas, Goldman ... Read >

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 ... Read >

Stock, Bond and Option

We may not familiar with option but we are sure that most of us know what is stock and bond. Stock is an equity that representing a company value. By purchasing stock, you are actually buying the ownership of a public listed company, which means that you ... Read >

Call and Put Option: Option Trading Basic Fundamental Theory

It is very common that stock is transacted in blocks divisible by 100, which is called a round lot. A round lot has become a standard trading unit on the public exchanges for quite sometime ago. In stock market, we have the right to buy and sell an unlim... Read >

How to make money in the stock market

There are abundant of money in the stock market. However, not everybody can get the money out from there. Some people can gain a lot from the stock market but some has lost a lot of money there. It is very indecisive. Sometime at that moment, you loss mon... Read >

Trading Options

Option is a legal agreement between buyer and seller to buy or sell security at an agreed price in a certain period of time. It is quite similar to insurance that you pay an amount of money in order that your property is protected by the insurance company... Read >