Selling Options the most Profitable Way
Passive Trading is done by people who want to create an extra income. A passive trader is often interested in investing their money, but they do not want studying financial statements, markets, and even weather reports. This type of investor laughs at the good luck mantras and charms used by some investors. They are often happy to put their money in the hands […]
Read moreBinary Options are like regular options in that they allow you to make a bet as to the future price of a stock. However, binary options are different in that if the “strike price” is met by the expiration date, the binary option has a fixed payoff of $100 per contract. It doesn’t matter if the stock price is a […]
Read moreMost options are traded within 90 Days to Expiration. LEAP Options are just like regular monthly options except that they have a long time to expire. LEAP options are options with DTE of more than 1 year from today. LEAP stands for Long-term Equity Anticipation Security. Investors will pay a lot of money for options with much days to expiration. […]
Read moreThe stock markets have created exchanges that trade Stock Options. These stock options come in two types. There are call options, which are the right to buy shares of a stock at a certain price by a certain date. And there are put options, which are the right to sell shares of a stock at a certain price by a […]
Read morePeople that sell options have to deal with option exercise risk. When you have sold options that are in the money some one can decide to use his right. You have better chances of making profit when you sell options than rather buying. With selling options you receive option premium. The buyer has only a limited time to exercise his […]
Read moreHave you ever wondered how the rich got their wealth and then kept it growing? Do you dream of retiring early or of being able to retire at all? Do you know that you should invest, but don’t know where to start? If you answered “yes” to any of the above questions, you’ve come to the right place. On this […]
Read moreOption trading may be daunting for beginning traders, but with the right foundation and a gradual investment of funds, you can expect to see significant returns. Here are a few tips to help you make smart investment decisions. Do not invest money you cannot afford to lose. Make intelligent decisions about what you can afford to invest. Selling Options is […]
Read moreWhen you start with trading, you often will hear a number of pearls of wisdom. Keep your losses small, let your winners run, no one ever went broke taking profits. You can keep your losses small at order entry. It is possible to select defined risk trades and you do not trading too many contracts. It is not a […]
Read moreTrading is one of the most exhilarating activities one can get involve with. Every day or each moment price movement can dramatically increase you well being. It can increase of diminish your capital of the active trader. The winnings can be swift and enormous, while the losses can take you out of the game. The potential to acquire fast and […]
Read moreWhat Exactly is a Profitable Edge? Traders are constantly looking for a trading system that hits 100% winners or a system that never makes a losing trade. This for many reasons is impossible and further below in this article it is explained in more detail why achieving an 100% win rate is simply impossible. So firstly what is an edge? […]
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A Long Put Diagonal Spread is the combination of a long put vertical spread and a put calendar spread. This results in a bearish position that can benefit from an increase in implied volatility. A Long Put Diagonal Spread is usually used to replicate a covered put position. Use this strategy when you have a bearish direction assumption. Typically we […]
Read moreWho does not want to predict the markets. It’s easy to get trapped in the news headlines telling you what the market is doing today. However, the most successful investors have learned to tune out the day-to-day market “noise” and focus on Volatility. Some news stories are important, such as earnings reports, but for the most part, small up and […]
Read moreWhat are the differences between American style Options or European style options? An option is a contract that gives the investor the right – but not the obligation – to buy or sell a specific financial instrument at a specific price and time. The owner of a European-style option can only exercise it on the day of expiration. This differs […]
Read moreIn which way can the use of standard deviation helps you to make a Profitable Investing? Stock price moves up and down based on company or economic news. It is difficult to predict the direction of a stock price. When using stock options you have to put up less capital an have much leverage. How do we use standard deviation […]
Read moreTrading Implied Volatility is selling the premium of the volatility expectation that is priced into individual options. The implied volatility of an option is actually backed out of the price of the option. All the inputs of an options pricing model are known (time to expiration, strike, price, interest rates) except for the volatility that the option is pricing in. […]
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