Archive for December, 2009
Please let me know if you have any experience (good or bad) with either, or if you would recommend something else.
I don’t know these programs. There are many books available on option trading ranging from beginners to advanced. The best approach is first to read about options, learn how they work, then start on a small scale. Buying call and put options is more risky than selling covered options. If you don’t already own some stocks on which you can sell options, you may want to take advantage of the high leverage that option buying gives you.
You will need to open a brokerage account. Look for a discount broker with low commissions on options, or open an account with a flat annual or monthly fee that permits unlimited trading with no commissions.
I just finsihed reading Trading for Dummies and really want to learn more before I start trading in stock options, is there a course I can take online or something like that?
To be successful at trading options in the stock market, you’ll need practice. The best way to get practice is through paper trading, that’s where you follow a stock and pretend you are actually putting trades in and then taking them out, hopefully for a profit.
You can also find books on the subject, like on amazon or barnes and noble. You’ll need a good foundation on the basics. There are also different strategies when it comes to trading options so you’ll need to learn those first as well.
For more advanced ways on how to trade options, there are sites that offer guidance. The advantage with these sites is that they will take you beyond the basics and offer you a better chance at higher returns on your trades.
I’ve listed some sites below that you can check out, they are for information purposes only and not a recommendation. However, you will learn a little more than what you can get from reading books.
http://www.stockoptiontradingsystems.com
http://optionsexpress.stockoptiontradingsystems.com
http://tradeking.stockoptiontradingsystems.com
I think if you start your learning this way, you will be able to succeed in trading options. Others have done it so there’s no reason why you can’t learn how to do it too.
Hope that helps and good luck!
I’ve heard that trading in the stock options market can be very rewarding but where can I learn how to do this?
Hi Francis,
To be successful at trading options in the stock market, you’ll need practice. The best way to get practice is through paper trading, that’s where you follow a stock and pretend you are actually putting trades in and then taking them out, hopefully for a profit.
You can also find books on the subject, like on amazon or barnes and noble. You’ll need a good foundation on the basics. There are also different strategies when it comes to trading options so you’ll need to learn those first as well.
For more advanced ways on how to trade options, there are sites that offer guidance. The advantage with these sites is that they will take you beyond the basics and offer you a better chance at higher returns on your trades.
I’ve listed some sites below that you can check out, they are for information purposes only and not a recommendation. However, you will learn a little more than what you can get from reading books.
http://www.stockoptiontradingsystems.com
http://optionsexpress.stockoptiontradingsystems.com
http://tradeking.stockoptiontradingsystems.com
I think if you start your learning this way, you will be able to succeed in trading options. Others have done it so there’s no reason why you can’t learn how to do it too.
Hope that helps and good luck!
I am trying to understand how e-trade’s option order types translate into options which I recognize.
For instance, I recognize Buy Call, Buy Put, Write Call, Write Put.
E-trade offers Buy Open, Buy Close, Sell Open, Sell Close.
I think Sell = Write.
Also, I think Call/Put is determined based on the symbol.
That would leave the actual transaction. If writing, one would start by sell open and end by sell close, correct?
<<<I think Sell = Write>>>
Sell to open = write.
Sell to close does not equal write.
<<<Also, I think Call/Put is determined based on the symbol.>>>
Correct. The symbol indicates the type of option (put or call), the strike price and the expiration month.
<<<If writing, one would start by sell open and end by sell close, correct?>>>
No. You are correct that you would start with a "sell to open" but to end the position you would use a "buy to close" trade.
—-
To start a position you would always use a "to open" trade. To end a position you always use a "to close" trade.
If you buy an option with a "buy to open" you will own it until one of three things happens:
(1) You sell it with a "sell to close" transaction.
(2) The option expires.
(3) You inform your broker that you want to exercise the option.
If you sell an option with a "sell to open" the short position will remain in your portfolio until one of three things happens:
(1) You buy it with a "buy to close" transaction.
(2) The option expires.
(3) You receive an exercise assignment notice and trade the underlying.
I am looking forward to do options trading. strategies like delta netral trading, butterflies but would like to do strategies with minimal risk.
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 levels given the risk in a particular trade.
the last statistics I heard, the odds against a new trader are about 50 to 1 — that is, 49 out of 50 new traders exit the markets within 3 years after having lost some, all, or more than all of their capital.
the only way to prevent this is to either not trade, or to learn a LOT before you start.
learning before you start is MUCH cheaper than learning as you go along. MUCH CHEAPER.
I work for a sales organization that I have found to do some very dishonest things. Hidden costs that they don’t tell the customer about, bait and switch advertising and other dishonest practices. Can’t afford to be without a job right now but what are my options?
Do your job but tell customers the true facts……or quit. The price of integrity can be high and I would like to think that I could do a job and maintain my self-respect. Perhaps you can look for another job while you are working?
it says that the appication process is closed for 2009. what to do. i have recived the mail yesteday. Pls find the same mail below.
BRITISH PETROLEUM COMPANY UK
OFFICE OF THE HEAD OF THE HUMAN RESOURCES DEPARTMENT
1 St Jame Square London,SW1Y 4FD
Ref No: 01/007/HRD/BPPLC
Attention: Applicant
It will be an excellent opportunity to join one of the world biggest Oil and Gas company that is focused on growth and sharing that success with employees. The Company offers a combination of competitive base salary with stock and stock options from day one plus other benefits. The compensation philosophy includes annual performance bonuses that have paid out in the two years of the Company’s existence in the UK.
The Company has approximately 100,000 employees spread between offices in United Kingdom..It is now seeking to strengthen its team with the addition of challenging team of new employee.
With a workforce of nearly 100,000 employees, BP operates globally, with business activities and customers in more than 100 countries across six continents.
Every day, we serve millions of customers around the world. To put this in perspective, our businesses and brands – among them BP, Castrol, ARCO, Aral, Ultimate, Connect and am/pm – reach nearly as many consumers as Wal-Mart, the world’s largest retailer.
BP downstream: oil refining and trading energy products in over 100 countries.
We received your CV.It was sent to the office of the Recruit Team for screening.Your qualification has met with BP first Round of recruitment, therefore you have been sent our company’s Application Form and Terms and Conditions for your kind view. Do fill out the application form if you are satisfied with our Terms and Conditions (Recruitment Policy).
If your application meets the minimum requirements, you will progress to the next stage of our selection process. This is a detailed review of the CVs/resumes and application form of all the candidates that have met the minimum requirements. The recruit team will then decide which candidates will be shortlisted for an interview here in london.Please be informed that only applicant who met with our recruitment policy and standard and also can incur 33% of their traveling expenses will be screened and consider for the interview here in our Head Quater.
If you are successful you will be invited for an interview in person.You will be contacted via email for the interview call up letter from the Chief Recruit Officer who is the head and leadeR of the recruit team.
If you are not successful you will receive an email letting you know. We will continue to notify you when your profile matches other job postings as there may be a different job for which you are a better fit.
BP need resourceful and Team Co-Ordinating individual to take up the new BP Branch offices which the company commissioned recently.Applicant with a good number of years of experinces in Is/Her qualification will have more job opportunity with BP.
British Petroleum Company needS applicant with the ability to present conclusions and recommendations clearly is essential.
Ability to work effectively with highly skilled technical professionals essential.
Must be enterprising,creative and energetic, eager to accept new responsibilities and challenges. +
Must be flexible and willing to undertake occasional travel.
Package: A base salary in the range £9K-£20K Monthly (GBP), dependent on experience, plus attractive Stock Grant (from day one), Target Bonus (circa 20% at present) and other Oil Company benefits..
Accomdation: Accomdation will be provided for all newly employed staff of BP,these apartment will be able to accomodate staff and family for the time duration working for BP.Apartment will be changed for staff upon promotion in position.
Family Education:
Education entitlement will be given to staff before resumption of new office with our company.
Full summary of the entire package will be couriered to qualified applicant before resumption of duty.
All positions are vacant in these offices, and British Petroleum Company needs skillful and well experienced individuals in the following area:
Marketing.
Account Executive.
Chief Accountants.
Engineering Managers Maintenance.
All Managerial positions.
Cost Engineer/ Sr Quantity surveyor.
All Engineering positions.
Chief Engineers..
Management and Project Management.
General Manager/Manager Engineering.
Project Manager, Exploration of Oil and gas fields.
Medical Officers.
Medical Consultants/Specialist.
Mining Consultants.
Engineering consultants
Financial Consultants.
Petroleum Geologist.
Welding and heavy fabrication.
Professional Executive Secretary.
Human Resources, Administration.
Microsoft Access, SQL-Server, Share Point Portal Server, Systems.
Personal & Facilities Management.
Const. Mgmt/Te
I get teh same things it is spam and not a real job offer. do not try to reply or go to website again it will load a virus on your computer
small group of day traders trade NIFTY(NSE INDEX) along with me on yahoo messenger,I want alternative option to communicate with them.I prefer one way audio link.or virtual trading room type set up which does not cost much.
I use yahoo conference for free with other traders and Mikogo so we can illustrate the leaders or participant’s charts. We did use Trillian before that.
I have started to trade option spreads, credit spreads to be exact. Since most of the positions are short term, do you know how they are taxed?
The IRS uses the term "straddle" to describe an option spread.
The taxation is covered in IRS Publication 550. See the following sections:
Short Sales . . . . . . . . . . . . . . . . . 54
Wash Sales . . . . . . . . . . . . . . . . . 55
options . . . . . . . . . . . . . . . . . . . . 56
Straddles . . . . . . . . . . . . . . . . . . . 57
The primary objective of the straddle rules is to prevent you from claiming a realized loss on one leg of a spread while you still have an unrealized gain on another leg of the spread. A secondary objective is to prevent the holding period of a security from including time that a position is hedged.
Taxes on spreads are usually short-term capital gains or losses, assuming you are not a professional trader. If you are a professional trader, and you make the mark-to-market election, none of the above applies.
I’ve heard of many different stock option trading strategies and would like to know which are the best ones to use. If you’ve had experience with any, please share your results in general.
To be successful at trading options in the stock market, you’ll need practice. The best way to get practice is through paper trading, that’s where you follow a stock and pretend you are actually putting trades in and then taking them out, hopefully for a profit.
You can also find books on the subject, like on amazon or barnes and noble. You’ll need a good foundation on the basics. There are also different strategies when it comes to trading options so you’ll need to learn those first as well.
For more advanced ways on how to trade options, there are sites that offer guidance. The advantage with these sites is that they will take you beyond the basics and offer you a better chance at higher returns on your trades.
I’ve listed some sites below that you can check out, they are for information purposes only and not a recommendation. However, you will learn a little more than what you can get from reading books.
http://www.stockoptiontradingsystems.com
http://optionsexpress.stockoptiontradingsystems.com
http://tradeking.stockoptiontradingsystems.com
I think if you start your learning this way, you will be able to succeed in trading options. Others have done it so there’s no reason why you can’t learn how to do it too.
Hope that helps and good luck!