It’s true – you can own your favorite stocks at no cost or at deepest discounts! Learn the highly guarded, secret Option trading strategies professional investors use to make steady profits, year after year, no matter what the financial markets do. This article will show you the step-by-step process of using Options to get the [...]
Bollinger Bands are a very useful indicator developed by John Bollinger based on a moving average and standard deviations. There are four parts to Bollinger Bands:
1. Moving Average: By default, a 20-period simple moving average is used.
2. Standard Deviations: A measure of the volatility of the price series.
3. Upper Band: The upper band is usually [...]
When it comes to option trading, the most important lesson to retain is an understanding of what’s actually being traded. The real commodity in any option trading strategy isn’t the underlying stock itself, and it has little to do directly with phrases such as implied volatility, net debit, net credit, strike price, or expiration date. [...]
If you’ve been trading stocks for some time and have never tried options, then you may want to give them a go. Stock options are more speculative but offer flexibility, diversification and control to protect your stock portfolio or create more investment income. So, here are some things you should know about options.
An option [...]
Options trading involves trading the option to buy or sell a stock, at a set price (strike price), until the option expires. With commodities, this is also known as futures trading. Options expire on the third Friday of each month. Options with expirations of over a year are called LEAPS, which stands for Long Term [...]
The first thing that you have to know before trading in stock option is that stock options are not stocks, and just because you trade in stock that does not license you to trade in stock option by default. When you are planning to trade in stock option, you should find out as much as [...]
Beginning options traders often make costly mistakes due to either a lack of knowledge or misinformation about the basic parameters of options and their exercise. Examples of common errors include being surprised that one is unable to close an index option position on the Friday before expiration, or being surprised by an unhedged option exercise [...]
Placing iron condor spreads on the broad market indexes is a relatively conservative, non-directional trading strategy that may be used for consistent income generation. This strategy profits as long as the index trades within the channel formed by the two spread positions. It is best used during sideways or slowly trending markets.Condor SpreadsA condor spread [...]
Short of having a crystal ball, picking winners when stock option trading is not as hard as many people would have you believe. In the first place, when considering purchasing or selling stock options, you need to conduct extensive research on the underlying stock yourself, or rely on someone else to do it for you [...]
There is much talk today about the earth’s ecosystem, how human activity has destroyed much of it and continues to do so at an alarming pace. Most of us know by now that human activity, as it is practiced today, is not sustainable in the long run. As a species we are loosing our home [...]