By admin, on May 31st, 2011%
Question by GreedGe is GoodGe – Gecco: Opinion for an option trading strategy…?
One strategy that I’ve thought about is:
1. Sell at the money.
2. “Use” the money from the sale and buy deep out the money.
It’s actually called “call back spread”.
The idea is as follows:
When you sell at the money one contract and buy deep-otm say 10 contracts…then a slight move up will make big profit.
I see a few problems here though:
1. Implied volatility. It’s not secret that out the money options have higher IV. But is this really a problem here?
2. Optimum time to exercise. You should . . . → Read More: Opinion for an option trading strategy…?
By admin, on May 28th, 2011%
Question by Bill L: Any stock options trading websites out there with solid recommendations & high returns?
I’m looking for the right option strategy. I trade call & put options, but I would prefer to join an options strategies service.
Best answer:
Answer by L QTry MonthlyOptionWealth.com. I use their service and I’m pretty happy with it. They were up 136% in 2009 (but I was only with them for half the year) They trade call spreads and put spreads.
Know better? Leave your own answer in . . . → Read More: Any stock options trading websites out there with solid recommendations & high returns?
By admin, on May 15th, 2011%
Question by PH: In option trading strategy, what does “Setup” and “Confirmation” means?
Best answer:
Answer by Alex“Setup” and “confirmation” are not specific to options, they are used in trading any instrument. A “setup” refers to something that a trader looks for when he/she wishes to make a trade. For example, if one uses technical patterns to make trades then a “setup” may be a double-top pattern, and the “confirmation” is some signal that confirms the “setup” as valid. Again, going back to a double-top formation, a break below the support of the double-top is a confirmation of the . . . → Read More: In option trading strategy, what does “Setup” and “Confirmation” means?
By admin, on May 2nd, 2011%
Question by Melvin D L: In option trading when should you use straddle strategies?
Best answer:
Answer by JPInvestorIf you are buying straddle, you expect the stock to move drastically either up or down. You don’t know which way so you buy the call and the put around the current market price of the underlying stock. Then, you profit when the stock moves above or below your strike prices minus the cost of the position.
If you are selling the straddle, you expect the stock NOT to move. You are betting that the stock will stay within a certain range . . . → Read More: In option trading when should you use straddle strategies?
By admin, on April 9th, 2011%
Question by Marine: Option Trading Strategies?
I need a good site with resources and analyzers. Thanks
Best answer:
Answer by Nietzscheanhttp://www.optionsizzle.com/ Is a good Investment/Trading website.
It has a section for resources:
http://www.optionsizzle.com/resources.html
Technical Analysis Education Center:
http://www.optionsizzle.com/technical-analysis-introduction.html
And a Stock Analyzer:
http://www.optionsizzle.com/resources/stock-analyzer.html?view=sanalyze
There’s a subscription service/members only area also.
Know better? Leave your own answer in . . . → Read More: Option Trading Strategies?
By admin, on March 10th, 2011%
Question by Santhosh: I wanna learn some good option trading strategies in indian market trading.?
Best answer:
Answer by RobI don’t know about the Indian market, but I’ve had great success selling stock options. You can make consistent, good money doing this.
Add your own answer in . . . → Read More: I wanna learn some good option trading strategies in indian market trading.?
By admin, on March 10th, 2011%
Question by parins: how can individual traders do option arbitrage or do strategies with minimum risk ?
I am looking forward to do options trading. strategies like delta netral trading, butterflies but would like to do strategies with minimal risk.
Best answer:
Answer by Spock (rhp)you can’t possibly move fast enough to do option arbs … the big firms and their computers are always ahead of you.
“minimal risk” suggests to me that you aren’t a trader now. There is nothing in options that is minimal risk, unless and until you learn how to hold your overall risk to acceptable . . . → Read More: how can individual traders do option arbitrage or do strategies with minimum risk ?
By admin, on February 21st, 2011%
Options Trading Strategy Concept
Upon hearing options trading strategy, what is then your understanding? If you work with a broker and have an investment portfolio then you may want to take some time to understand this concept. Options trading industry, just like the other areas of the financial market, investors are compelled to have at least a basic familiarity of market conditions and movement, status of their holdings, and any other foreseeable situations that might create or diminish income.
Clearly this means that an options trading strategy is necessary for the most beneficial results. A question therefore may rise . . . → Read More: Options Trading Strategy Concept
By admin, on February 19th, 2011%
Simple Options Trading Strategies
Talking about learning how to trade options, you may want to stick to long option trading strategies since as the buyer the risk will be the premium money you pay up front to own the option.
Based on your particular trading strategy, you can buy a call on a futures market that you think is moving or may move higher. Or you may buy a put on a market you think is moving or will move lower. Learning about options, you can look at a market and know that you will probably have to pay . . . → Read More: Simple Options Trading Strategies
By admin, on February 11th, 2011%
Three Winning Bear Market Option Trading Strategies Revealed
Most people lose money in a bear market. Do you remember the tech bubble and recession in 2000-2002? This article will discuss three option trading strategies that can make you big profits in a bear market or recession.
Option Strategy No. 1 – Buying Put Options
It is fairly easy to purchase put options. This option trading strategy can even be used in an IRA account as long as you have been authorized by your broker. You desire to select a stock, which you feel has a good chance of going down . . . → Read More: Three Winning Bear Market Option Trading Strategies Revealed
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