Articles, tagged with "call options", page 5

Options Trading Guidelines intended for Beginners

Option trading tips differ widely also cover countless options trading opportunities. However, the essential options trading tips are grouped into three major types as bullish trading guidelines, neutral trading tips, and bearing trading guidelines. Eve... Read >
Author: Fritz Cayemitte

What Are Option Directional Trades?

Options provide great position management and risk control potential when using them to trade the market directionally. This goes beyond the simple fact that a long position in a call or put option has an absolute maximum risk equal to the cost of the opt... Read >
Author: Mervin Hester

How to Do Credit Spreads - Risk and Probability of Success

A credit spread is an option trading strategy where you buy an option, call or put, at one strike price and simultaneously sell the same type of option at a different strike price, both with the same expiry month. The premium received from the sold option... Read >
Author: Owen Trimball

1 Biggest Options Trading Mistake Ever

Recently, I have been answering options trading questions posted by options trading beginners at my website and it amazes me to find that MANY of these questions surround a single theme. Some of these questions are like: "I just bought a call option, h... Read >
Author: Jason Ng

Trading Options Strategies: Option Selling

A lot of traders want to buy options in an effort to maximize gains and limit losses. Trading options strategies becomes normal today. Limiting losses to the purchase price of the option seems ideal, except for one major flaw, which is time decay. Chi... Read >
Author: Kian

Learn How to Gain a Lot of Money through Put and Call Options

Dealing with trade options is a bit more complicated than being with trading stocks. So for you to be successful in this field, you must understand everything that includes with this first. Trading businesses are really such a very nice opportunity on how... Read >
Author: Emma

Options Selling For Traders

Options for traders give an unlimited number of strategies with various levels of risk and return. Sorry to say, some retail traders get stuck in a long option left unaware of the potential flexibility offered by alternative option strategies. Among the p... Read >
Author: Jordan

Trading Butterfly Option

In stock trading, traders avoid spreads of any kind because limiting losses can also limit gains. It is a must to trade in a realistic way. If you trade a three-fold gain, which is the strategy that requires only little up-front capital, you strictly limi... Read >
Author: Melissa

An Overview of Delta Neutral Trading

There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy. Another way is to buy and sell options based o... Read >
Author: Dillon Norris

Risk Free Option Trading - Using Arbitrage

People are always wondering if there is a way that you can invest in the stock market totally risk free. Is there a way that, once you enter your position, there is 100 percent certainty that you will make a profit? The answer is 'yes'. In this arti... Read >
Author: Owen Trimball

Online Stock Market Trading - Stock Option Trading Basics

Trading in stock options is not recommended for novices to the stock market. Those uninitiated in the stock market will likely sustain losses. It is recommended that you educate yourself first and start out with the basics. This way you will be able... Read >
Author: Paul Smith

Play Bookmaker Writing Put Options

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 optio... Read >
Author: Jason Ng

Long and Short Butterfly Trading

The Butterfly is an option position that is composed of 2 vertical spreads that have a common strike price. In other words, butterfly trading involves an opening position where options (either calls or puts) are bought (or sold) at 3 different strike pric... Read >
Author: Steven T. Ng

Four Must-Know Rules to Profit from Options

Whether you're a novice options investor or you've been trading options for years, four simple rules could mean the difference between serious gains and major losses. Here's everything you need to know to go from optionless to an options whiz… Every ... Read >
Author: Greg Guenthner

Backspreads (Reverse Ratio Spreads)

Backspreads, also known as reverse ratio spreads, are an option strategy utilized when you believe there will be much volatility in the stock but are not 100% sure whether it will go up or down. If the stock moves a lot in the predicted direction, you wil... Read >
Author: Steven T. Ng

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