From active speculation to risk management, buying and selling options can give traders ample flexibility in the market. However, unlike trading standardized futures products, trading options contracts requires a bit more skill and expertise. Let’s take a look at the mechanics of buying versus selling options contracts. Buying Vs. Selling Options 101 Before making a… Read more.
Search Results for: options
What Is the Best Way to Sell Stock Options?
At any given time, an equities options trader can do one of two things: buy or sell. In this article, we will look at how the best way to sell stock options varies according to your situation. Buy or Sell? Options traders may either buy or sell contracts. There are several key differences between each… Read more.
What Are the Four Risks of Trading Stock Options?
When it comes to trading stock options, traders defer to the Greek language to address risk. Are you familiar with “option Greeks?” In this article, we’ll teach you about the four Greek risk measures of equities options: delta, gamma, theta, and vega. 1. Delta Delta is the rate of change of a stock option’s price… Read more.
Understanding the Impact That Stock Option Time Decay Has on Stock Options
Options contracts are unique financial instruments. One thing that makes them different from forex pairs, ETFs, or stocks is that they have a finite expiration date. And, upon reaching expiry, all option contracts become untradeable. Read on to learn more about stock options time decay and how it can impact your equities market risk exposure.… Read more.
Bearish and Bullish Options Trading Strategies
In the financial markets, you can have three opinions about price: bullish, bearish, and neutral. No matter the market, volatility, or news cycle, these three biases are the end products of market analysis. Here’s a brief look at each type of market bias: A bullish bias is one that anticipates rising asset prices. If you’re… Read more.
Making Money with Stock Options
Are you interested in making money with stock options? If so, you’re not alone. Traders from around the globe look to stock options to generate cash flows, sustain an income, and hedge risk. In this blog article, we’ll cover the basics of stock options and how they can help you achieve your financial goals. Stock… Read more.
Using Options to Profit from Time Decay
Stocks, forex pairs, cryptocurrencies, and futures contracts provide active traders countless opportunities. Given the diversity of alternatives, one question rises above the rest: Which market should I trade? Let’s take a look at two of the most popular assets out there—stocks and futures—and the reasons for trading each. Why trade futures? A futures contract is… Read more.
How Can I Make Money Trading Options?
Over the past decade, online derivatives trading has exploded in popularity. In the first half of 2021, the Futures Industry Association (FIA) reported the total number of traded futures and options contracts reached 28.9 billion, up 32.1 percent year-over-year. Of this total, exchange-traded options accounted for much of the action. It’s an obvious point, but… Read more.
Trade Spotlight: Options (July Monthly Summary)
The Trade Spotlight advisory service consists of three segments covering futures, futures spreads, and commodity options. The commodity markets are analyzed by applying our methodology and recommendations are delivered to you based on our trading philosophy. Our technique is to track specific chat patterns for breakouts and apply key technical indicators to confirm the trade setup.
Is Selling Options a Good Fit for My Financial Goals?
Options trading can help you achieve a diverse array of financial objectives. From hedging risk to speculating on future price movements, trading can be a valuable tool for engaging the world’s capital markets. Selling options, however, is a unique undertaking that requires a comprehensive understanding of the process. Although it may be suitable for some,… Read more.