Pick The Right Options Trade

This article will help you to pick the right options trade. We will show you how to select an option trade with high probability of success. Picking the right option can be a tough decision, if you don’t know how. And it often makes the difference between a good trade and a bad one. Option trading involves risk, and you […]

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Reduce your Trade Costs

Active traders opens and close many positions over a year, what can they do to reduce trade costs? If you buy an option and later on sell the same option you have basically traded a bid-ask spread. There are hidden fees in trading bid ask spreads When trading options you have to deal with bid ask spreads every time you […]

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Derivatives Trading

Get started with derivatives trading with detailed information on instruments like futures contracts or options. Derivative is an investment instrument, such as Futures and Options contracts, which derives their values from an underlying security, or an index. A Contract is a legal bonding between two or more parties, where the reason for the contract, time period and the amount is […]

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How do you trade stock options

In the previous article you have been searching for opportunities in stock options and now you want to know the details of how to trade stock options in a lucrative way. The question rises: What do you need to look for and what does it take to consider when entering a trade in stock options. Is it possible to break […]

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Develop a Profitable Trading Strategy

There are several profitable trading strategies for small risk traders, larger profit traders and long term investors. Regardless of your level of experience and your chosen trading style, you must keep your eye on the target and that is to have a many winning trades. You can sell options and have a high probability of profit and low risk. In […]

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Trading signals for Stock Options

Most traders wants trading signals. What are trade signals? Trading signals provide clues as to when to trade stocks or stock options. We use them to determine entry points and optimal timing. Learn the most important trading signals and how to use it to time your market entry. Trading signals provide traders with¬† signals that function as that green light […]

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Implied volatility as a trading tool

Implied volatility as a trading tool

Implied Volatility is important when you are selling options. It is a great trading tool that shows you how much potential the stock can move according the market’s opinion. It doesn’t give a clue which direction it is going to move though. If implied volatility is high, the market expects that the stock can move largely. When the stock has […]

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How will Standard Deviation help in trading

Option Premium sellers often sell options one Standard Deviation away from the market price. In this way there is a high probability of profit. The Options sold may expire worthless or you take profits now buy buying them back. Standard Deviation is a statistical term that measures the amount of variability or dispersion around an average. It is a number […]

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Time Decay is your best Friend

We benefit from options because of Time Decay. Time decay is represented by a Greek term know as Theta. Don’t worry too much about the Greeks for now, we will take a look at it a later on. Theta is a crucial component for options traders that decide to sell options. They will receive options premium to take on risk. […]

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Why managing your own money

Why managing your own money, sounds like an obvious question, right? Many people let other people decide how to build up their pension or hire a money manager. You like to choose the food your eat? How would you like to go to the grocery store and let the manager to pick out the food for you. You could end […]

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