Combining technical analysis with options trading is not a typical course of study when learning how to trade options. Option traders who want to maximize the return need to understand how to combine their options analysis with certain market conditions. In this article, I will wade through the reasons why a trader would prefer to [...]
The money and stock market are being looked at as the best places to make millions since these are the places where massive amounts of cash are existent and directed into with the hope of earning great profits in the near future. This image visualizes a portrait of the exclusivity in the trading industry. The [...]
We have seen it way too often, haven’t we?
Advertisements that tout making thousands of percents in profits within days and millionaires made within weeks, all by option trading! Such advertisements usually draw hordes of hungry, indebted gamblers who need that “one big win” to recover their debts or losses elsewhere to their unusually expensive [...]
In options trading, there are some basic lessons that are the backbone of many other successful options trading strategies. How to engage in spread trading in options trading to enhance potential gains is one of these lessons.
Spread trading is a foundational tool that you should have in your options trading toolkit. It will [...]
The Foreign Exchange market is currently the most profitable financial market to invest in today. With more than two trillion dollars worth of trade every day, a lot of people have been enticed to trade here due to the possibility of huge returns. The problem however is that most trading stories in the Foreign Exchange [...]
Are you about to pay thousands of US Dollars to attend an option trading seminar this weekend?
Whether or not you have decided to join that weekend seminar, I hope I can help you make a more intelligent decision here.
A Grim Experience At An Option Trading Seminar
I had a friend who joined a weekend, 2 days, [...]
Many opportunity seekers are attracted to options trading as they have heard stories making promises of fast profits. The problem is that these traders come in thinking of nothing more than stuffing their bank accounts full of cash in a short period of time. While this scenario is achievable the odds are certainly going well [...]
Forex market and Stock market also uses options. In the stock market there is what we call as stock options. These options would include two parties, the buyer and the seller. The seller would write down a contract of sale for his goods. There would be an expiry date and a predetermined price of the [...]
There are 2 kinds of option trading systems in general; Discretionary and Mechanical. A discretionary option trader follows no specific rules but chooses, enters and exits an option trade using all of his knowledge or gut feeling. A mechanical option trader is one who translates his knowledge of choosing stocks, entry and exit into objective [...]
The Implied Volatility (IV) of Calls needs separate treatment from the IV of Puts. Also, for specific options trading strategies treat the IV of both Puts and Calls as a combined bundle.Each option at each strike implies its own individual percentage value of the underlying product’s future volatility. This makes it unique from any other [...]