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

Reducing the Cost Basis

When talking about Cost Basis we will review the cost basis of stocks and options. Further we will look how to reduce the cost basis of options. The Cost Base or Cost Basis is the average cost of a stock which you acquired in multiple transactions over a period of time.   Cost Basis of Stocks Here is an example […]

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

Selling puts for huge income

Selling puts is an essential part of options strategies. Selling a put is a strategy where an trader writes a put contract. By selling the contract the put buyer has the right to sell stocks for a certain price. Selling options is advantageous to an trader, because the option trade has a higher probability of profit and she will receive […]

Read more

What Option Types does exist

Before you begin trading options, you should know what exactly is a stock option and understand and what option types does exist. The two basic types of option contracts – puts and calls. Learn how they work and how to trade them for profits. There are two options types: calls and puts. You can buy them or sell it. When […]

Read more

What is a stock option

Stock Option Contracts comes in several ways. In a typical option contract, the seller agrees to keep an offer open for a certain amount of time. A potential buyer has to give the seller some payment in exchange. In other words in an option contract, the seller is agreeing to keep the “option”open for the buyer. An option contract gives […]

Read more

What is the Cost Basis

cost basis

Cost Basis can be best explained by the use of an everyday live example. Imagine that you are a broker who buys a house, renovate it and sell it for a higher amount. You have purchased the house for a certain amount of money. After that you will buy some paint and wall paper to do a make over. Then […]

Read more
1 12 13 14