What is the difference? Some may shout.
There is indeed a very BIG difference. I used to search for options strategies all the time as I thought it will make me a better trader. But does it really help a trader to trade better?
My answer is Yes (30%) and No (70%). Most “options strategies” [...]
Whether you are investing in stocks, futures, forex or options, you know that there are many ways to trade them. With every school teaching different systems, methods and strategies, sometimes it is difficult to distinguish which is the most powerful of them all?
Almost every trading books and trading seminars that I have come across [...]
The up scenario
In the up scenario, the maximum gain that can be attained is the stock finishing at $10.00 or higher.
At $10.00, you would profit from the full value of the extrinsic value of the option which is $.50 and you would also have $.50 of capital appreciation from the stock for a total of [...]
Time decay, also known as theta, is defined as the rate by which an options value erodes into expiration. The value of the option over parity to the stock is called extrinsic value.
Since an option is a depreciating asset, meaning it has a limited life, the extrinsic value in the option will wither away daily [...]
Are you interested in option stock trading? Then you must be interested in option stock trading strategies. To understand stock options better lets see a simple dictionary definition.
Strategy can be defined as a skill in managing or planning, especially by using stratagems. The words managing or planning using stratagems to achieve a particular end or [...]
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 [...]