What are Stock Options?

Companies who needs money to expand their business can go to the bank for a loan or issue Stock Options. Stock Options have two similar but slightly distinct meanings in everyday use. The first use is in the sense of employee stock options. And the second use is that stock options are traded on an exchange. An employee stock option […]

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How to Start Trading

How do do you start trading. While buying and selling stocks can make you a fortune, it’s just as easy to lose that money. This also counts for option trades. To become a successful trader, it is crucial that you become familiar the basics of trading and learn to apply the right strategies in a particular market condition. How do […]

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What is an Stock Option?

While a stock option may sound complicated and appropriate only for sophisticated investors, they are quite easy to understand and actually quite commonly used in everyday life – although they are called by different names. In fact, we’re sure that everyone reading this article has used a call or put option at one time or another. If you don’t believe […]

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Why should you Trade options

Why options trading? why should you care? When you compare options trading to stock trading you have a lot more possibilities. Anyone can learn trading. It might be a little bit overwhelming in the beginning. When you know the basics you will quickly see the many benefits of trading options. When you look to the illustration you see the differences in […]

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Why do you want to Trade Stock Options

The allure of stock options trading is understandable: they might be cheap, profitable, and could have make more people rich than selling other financial products. Probably you want to know if you can make a living trading stock options? Absolutely. Many professional traders use stock options as their own cash cow. What is Stock Options Trading Stock Option contracts is […]

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What is a stock

A stock or stocks represents partial ownership of a corporation. Stocks are also called shares. When you buy them, you effectively own a small fraction of that company. Most stocks of public companies are traded on stock exchanges like the NYSE or the NASDAQ. Owning Stocks or selling Stock Options is very popular instrument for traders and investors. But what […]

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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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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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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 […]

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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 […]

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