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 are one of the owners of the company. [...]
The issue of direct access is an important one and it becomes more important the more short term your trading is. The market can change from a state of seeming paralysis to one of shocking volatility and activity in a flash. The length of time it takes between you deciding to enter an order and [...]
In Trading Stock Options, experienced option trader Brian Burns, explains the basics of stock options and shows you how to trade the most successful option strategies. As you begin your journey on the option path, you’ll have the luxury of real-life trade examples to show you the way. The diagrams and charts help [...]
With the world in recovery mode, many people are still questioning how the financial markets got so out of control. They are also questioning something a little closer to home; how to better look after their own money and finances.If we are being honest with ourselves, we would probably admit that we can improve on [...]
I like to trade stocks and shares but what do when unemployment in both the US and UK keep increasing? Interestingly the major stock markets are also increasing.Unfortunately, equity markets are completely detached from the ‘real’ economy. So as unemployment continues to rise, and is expected to continue rising throughout 2010, we could see the [...]
Taking a look through the broadsheets of a business section you will notice that many companies offer their executive bonuses or part of their salaries for a good job. This is also known as “options”.
What actually are options? Do they have any link with stocks? What is meant by the phrase “options are exercised” [...]
Getting your start with options trading, like any successful venture in life, requires a road map. How do you know where you are going and how to get there without a map? The most successful people in the world take time to plot out their major moves, including career and investments. Being a novice with [...]
Options have unique properties. These make options quite interesting trading vehicles and sometimes difficult to understand. Before explaining how to trade them and the different strategies let’s first examine the options fundamentals.
Strike Price
This is the price at which the buyer of a call option has the right to buy the underlying. For example if you [...]
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 unlimited number of shares as long [...]
Wouldn’t it be great if we could buy an option with five months left until expiration and sell an option with 2 months left until expiration for the same price? You couldn’t lose. Well we can’t. I love options spreads so much I realized something very important. We can buy a spread that has a [...]