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 […]

Read more

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 […]

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

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

Collect Option Premium in every market condition

Would you like to collect option premium, that is to earn money regardless whether the market is going up down or sideways?  We will describe how to use two complementary strategies for collecting short term money. We start the strategy with selling a put spread. We do that time after time until we got assigned. Then we apply our second […]

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 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
1 2 3 4