Stock Option Trading System » option trader

Put Strategies for Option Traders on Nokia (NOK)

admin — Thu, 31 Dec 2009 20:15:28 +0000

Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.

The Pick Nokia (NOK):

On Dec. 21, a Fast Money cast member said, I think $12.25 is the low and it trades higher from there. It looks like the cast member took a bullish stance on NOK, which traded at $12.39 at the time of this report.

BULLISH Option Trading Idea for NOK:

Short put

Sell February 12 puts for 50 cents each
Net credit of 50 cents
Maximum risk: $11.50 plus commissions

Maximum potential profit: 50 cents minus commissions

Breakeven: The strategy will be profitable if NOK shares are trading higher than $11.50 at February expiration.

BEARISH Option Trading Idea for NOK:

Bear put spread

Buy the February 13/12 bear put spread for 50 cents
Net cost of 50 cents
Maximum risk: 50 cents plus commissions

Maximum potential profit: 50 cents minus commissions

Breakeven: The strategy will be profitable if NOK shares are trading lower than $12.50 at February expiration.

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Duration : 0:2:21

Technorati Tags: 091231, 1, MAO, NOK

Bull and Bear Plays for Option Traders on Potash (POT)

admin — Mon, 28 Dec 2009 23:47:24 +0000

ad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.

The Pick Potash (POT):

On Dec. 18, Mad Money host Jim Cramer said, POT dropped almost $7 on Friday, and this selling could continue on Monday. Investors who want to buy the stock should wait until Tuesday to do so. He thinks 2010 will be better for the agriculture group than 2009 was. POT shares were trading at $105.01 at the time of this report.

Bullish Option Trading Idea for POT:

Bull put spreads

Sell January 100/90 put spreads for $1.36 each
Net credit of $1.36
Maximum risk: $8.64 plus commissions

Maximum potential profit: $1.36 minus commissions

Breakeven: The strategy will be profitable if POT shares are trading higher than $98.64 at January expiration.

Bearish Option Trading Idea for POT:

Bear call spread

Sell January 120/130 call spreads for $1.10
Net credit of $1.10
Maximum risk: $8.90 plus commissions

Maximum potential profit: $1.10 minus commissions

Breakeven: The strategy will be profitable if POT shares are trading lower than $121.10 at March expiration.

Duration : 0:2:21

Technorati Tags: 091228, MAO, POT

how can individual traders do option arbitrage or do strategies with minimum risk ?

admin — Sun, 27 Dec 2009 06:15:50 +0000

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.

Stocks and Options Trading Ideas for 4/23/07

admin — Sat, 26 Dec 2009 05:27:12 +0000

Technical analysis video of individual stock trading ideas for Monday April 23, 2007 including: Exelixis, Inc. (Public, NASDAQ:EXEL), Hoku Scientific, Inc. (Public, NASDAQ:HOKU), Solarfun Power Holdings Co., Ltd. (ADR) (Public, NASDAQ:SOLF), SuperGen, Inc. (Public, NASDAQ:SUPG) and MicroStrategy Incorporated (Public, NASDAQ:MSTR) Trend analysis for daytraders and swingtraders of stocks and options. Trading stocks involves risk; this information should not be viewed as trading recommendations.

I HAVE NOT CHECKED TO SEE WHEN EARNINGS ARE DUE FOR ANY OF THESE STOCKS, BE SURE TO CHECK BEFORE CONSIDERING AN OVERNIGHT HOLD!

Duration : 0:6:10

Technorati Tags: business, DOW, earnings, invest, JONES, nasdaq, s&p500, stocks, trading

Global Trading Edge Merry Christmas

admin — Wed, 23 Dec 2009 11:31:27 +0000

Duration : 0:0:47

Technorati Tags: Christmas, edge, Global, Merry, trading

Pt3, Steve Nison: Secrets to Profiting with Candlestick Charts for FX Options Trading

admin — Sun, 20 Dec 2009 20:16:30 +0000

Steve Nison, the leading authority on candlestick charts and best-selling author, shares his groundbreaking approach to candlesticks for traders looking to spot opportunities in the Forex market.

Duration : 0:6:33

Technorati Tags: business, candle, candlestick, exchange, foreign, forex, fx, International, ISE, meizinger, nison, options, Securities, stick, trading

What’s the best online brokerage firm for a beginner Options trader?

admin — Fri, 18 Dec 2009 23:42:39 +0000

All major brokerage firms provide their clients with on-line services, including trading platforms, latest market & financial news and research.

Customer need to select the site that is best for them. Traders have requirements in a site, while investors have other requirements.

Although most sites are geared to general securities and commodities, however customers may have special needs for the types of products they trade, and the markets in which they trade.

It seems that the most popular firms for on-line investing all of which provide excellent platforms and services and can and do options are; Scottrade; Chas.Schwab; TDAmeritrade; Fidelity; E-Trade and Thinkorswim.

Stocks and Options Trading Review 4/23/07

admin — Fri, 18 Dec 2009 06:33:26 +0000

Technical analysis video review of the stock market and individual stocks for Monday April 23, 2007 including; Nasdaq 100 Trust Shares (NASDAQ:QQQQ), S&P 500 Index (AMEX:SPY), Semiconductor HOLDRs (AMEX:SMH), iShares Russell 2000 Index (ETF) (Public, NYSE:IWM) , UltraShort QQQ ProShares (ETF) (Public, AMEX:QID), Exelixis, Inc. (Public, NASDAQ:EXEL), Hoku Scientific, Inc. (Public, NASDAQ:HOKU), Solarfun Power Holdings Co., Ltd. (ADR) (Public, NASDAQ:SOLF), SuperGen, Inc. (Public, NASDAQ:SUPG) and Polycom, Inc. (Public, NASDAQ:PLCM) . Trend analysis for daytraders and swingtraders of stocks and options. Trading stocks involves risk; this information should not be viewed as trading recommendations.

Duration : 0:7:54

Technorati Tags: analysis, Brian, daytrade, invest, Shannon, swingtrade, technical

Where can I find a list of proprietary option traders specializing in algo trading?

admin — Wed, 16 Dec 2009 11:52:27 +0000

Hi, i know what your question is.

i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

I am sure that your Investing will benefit greatly from this website.

http://investing.sitesled.com/

Good Luck and Best Wishes!

Pt6, Steve Nison: Secrets to Profiting with Candlestick Charts for FX Options Trading

admin — Tue, 15 Dec 2009 19:46:17 +0000

Steve Nison, the leading authority on candlestick charts and best-selling author, shares his groundbreaking approach to candlesticks for traders looking to spot opportunities in the Forex market.

Duration : 0:9:32

Technorati Tags: business, candle, candlestick, exchange, foreign, forex, fx, International, ISE, meizinger, nison, options, Securities, stick, trading