Jul 26, 2010 Covered Call Writing . I Covered call writing is a very commonly used strategy. For good reason. Most of the time it is profitable to adopt this strategy, and over the longer term, it provides superior returns with less overall risk. That's ...
Jul 23, 2010 Bullish Trades. III Call Spreads Last time we looked at buying a call spread when the strike prices were 5 points apart.. This is a typical example of a debit spread. That means that the calls bought have a higher premium (price) ...
Jul 10, 2010 Bullish Trade. Part II. Call Spreads Last time we looked at buying an ITM call option. (Jul 19, 2010) One of the best characteristics of options is the ability to use them to reduce risk. That involves a technique known as hedging. ...
Jul 19, 2010 I'm Bullish (Bearish): What Can I Trade? Let's say you decided to take a long position in a given stock, but prefer not to buy ~10 shares with your $500 of available cash. Let's also assume that you don't want to gamble ...
Jul 16, 2010 What Can I Trade? When interested in trading options, certain pieces of information are necessary. Despite the availability of Google, not everything is easy to find via search engines. 1) Which stocks have listed options (listed simply means the options trade on ...
Hello, Mark I look for your help: I`m TIRO in options trade and we are new US Permanent Residents, so sorry for my English. I keep 300 chares of PDLI that I bought in March 2010 for $7.20 (275 chares) and $6.63 (25 shares). Today ...
Jul 12, 2010 Questions and Answers I cover a lot of different topics in my Options for Rookies blog, and to me, the most attractive feature is the conversations I have with readers. Questions are answered in detail and various ideas are presented for discussion. ...
Jul 9, 2010 Trading Philosophy Today I'm sharing some of my trading/investment philosophy. These ideas work for me and I believe are universal. However, these are based on my experience and may not work for everyone. My reason for sharing them is to suggest that ...
Jul 7, 2010 Selling Naked Puts Selling n aked options is considered to be a risky proposition by most people who understand how options work. However, there is one situation in which selling an uncovered option is a play I can endorse. When you sell ...
Jul 2, 2010 The Versatile Option Options have many uses and are versatile investment tools. Some uses for options: To buy stock at a lower price (below current market price) To sell stock at a higher price (above current market price) To bet on the ...
Jun 30, 2010 Volatility Volatility is the property of a stock that describes its tendency to undergo price changes. More volatile stocks undergo larger or more frequent price changes. Outside the options world, volatility is described by the term beta , which is a measure ...
Jun 28, 2010 Sizing a Trade It is often difficult for a new options trader to get a feel for how many options to trade. Trading an appropriate number of contracts is important to your success because it is the easiest method used to manage ...
June 25, 2010 Why Would Anyone Sell a Stock Option? When you sell an option, you are granting certain rights to the option buyer. The major right is the ability to force you to buy or sell stock from that option holder - at a ...
Jun 23, 2010 Why Would Anyone Buy a Stock Option When buying a put or call option, the trader's usual objective is to earn a profit. That may seem obvious, but investors also buy options to hedge, or reduce the risk of owning, other positions. ...