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 […]

Read more

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 […]

Read more

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 […]

Read more

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 […]

Read more

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. […]

Read more

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 […]

Read more

Importance of Extrinsic Value in Selling Options

The definition of Extrinsic Value is the difference between an option’s market price and its intrinsic value. In theory, options should not trade above their Intrinsic Value due to the time value associated with option pricing. Why is Extrinsic Value important for traders?  We will explain in depth what extrinsic value is. Then we will explain why extrinsic value is […]

Read more

How to make Money with Trading

You might think: How much money can I make with trading?  How trading options can help you earn that extra money with a few basic strategies. Remember when you got your driver license. Maybe your dream was to run in the big car races Indi500. It wasn’t the coolest part being been able to driving to a friend’s house, to […]

Read more

What determines the Option Price and Value

There are several factors that determine the option price of a contract. Most traders are trying to take advantage of directional moves in the underlying stock, and that is the primary driver of the price of an options contract, especially its intrinsic value. But the extrinsic value of an option, also known as its time value, is affected by time […]

Read more

The Mystery of Option Extrinsic Value

Once you understand how extrinsic value interacts with intrinsic and time value of an option, you are better suited to select underlying stocks most suitable for your strategy, and to manage stock and option risks more effectively. We like to sell options in order to receive option premium. Option premium contains three different components, each one has its own unique […]

Read more

What is Option Moneyness

In the world of options trading, Moneyness is used to describe the relationship between the current trading price of the security and the strike price of the option For Traders who are buying or selling options is important to know how far an option is ITM or OTM. Whether an option is in-the-money or out-of-the money it tells the holder […]

Read more
1 14 15 16 17