Archive for the ‘trade option’ Category
I do read the article from yahoo about option, and watch some of the vedio from Youtube, but i still don’t get it, how it work?
Can anybody show me the demos?
I really want to do option now beacuase the common stock increasing so little.
and provide me some resources,
thank you
I really wonder who deceived you into that. I am a senior investment banker, and i have to spend a lot of time with options portfolios. And i will tell you that no matter what brokerages tell you, options are not for individuals. Options are for investment banks, so they can manage their risks. Don’t do options, unless you want to waste your capital. Look, even personal finance sources tell you so, check it here.
www.ameri-financial.com
Hope you stay away from trouble.
Monica.
The Blog Entry that Accompanies this Entry is at: http://investorandtrader.blogspot.com/2008/06/futures-options-series-option.html
My Daily Blog is at: http://investorandtrader.blogspot.com/
So, I had that series regarding Futures, and Commodity Futures. What about options on Futures? I’ve been discussing that.
Ok. We’ve gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term “Put” option, and “Call” option. We discussed the five components of pricing with the Black – Scholes model.
I will finish up by talking about Futures Options Strategies …
NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.
Duration : 0:6:34
My Daily Blog is at: http://investorandtrader.blogspot.com/
So, I had that series regarding Futures, and Commodity Futures. What about options on Futures? I’ve been discussing that.
Ok. We’ve gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term “Put” option, and “Call” option. We discussed the five components of pricing with the Black – Scholes model. We discussed the first two components of an options value, in the delta and the gamma. Now, let’s turn to the aspect of time, or ‘theta’.
NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.
Duration : 0:6:23
you just buy the stock, then right after sell the call? is it cheaper to purchase them in groups such as married put, or a straddle? if a stock is exercised will it automatically sell the unit its purchased with? exacly how does it work?
<<<whats the advantage of buying an option trade as one unit together>>>
1. You are never unhedged. While the odds of the market moving badly against you (between two separate trades to establish a spread) are low, it only has to happen once on a large position to cost you a lot of money.
2. For some spreads, you will require less margin with a spread order.
3. You are more likely to get your order fillid than you are with two separate limit orders.
4. You are more likely to get a better price than you are with two separate limit orders.
<<<If you were doing a covered call couldn’t
you just buy the stock, then right after sell the call?>>>
Yes you could.
<<<is it cheaper to purchase them in groups such as married put, or a straddle?>>>
Most brokerages will charge separately for each leg of a spread, so you do not save any money on transaction fees. However, there is a good chance you will get a better fill between the bid and the ask quotes. This is particularly true is the option is not very liquid (i.e. if the volume of them is low) or if the spread between the bid quote and and ask quote is large.
<<<if a stock is exercised will it automatically sell the unit its purchased with?>>>
I assume you mean "if an option is exercised" since stocks cannot be exercised.
The answer is no. It does not automatically trigger anything for the other leg of the spread.
<<<exacly how does it work?>>>
Let me share an example. Assume I did a buy-write for 500 shares of XYZ. (A buy-wirte is spread buying the stock and selling a covered call for the same number of shares.) If the owner of the 5 calls I sold exercises them, and I am assigned, I will sell 500 shares of XYZ. If the only shares of XYZ that I owned were the 500 I purchased as part of the buy-write, those are the 500 shares I would sell. However, if I has already owned 500 shares of XYZ before the buy-write, the FIFO (first in – first out) rule would apply and I would sell the 500 shares I owned before doing the buy-write.
Options News Network (www.onn.tv) Pro Lesson: The Information in Option Prices. In this video, Joe Troccolo discusses the information in option prices. View more videos with options trading strategies at www.onn.tv
Duration : 0:3:12
I would like to form a Deleware corporation to do this because they don’t pay income taxes. It wont be an investment company or hedge fund, but it will be a trading company for myself, and yes, I already know that I can trade for myself in m own brokerage aaccount.Can anyone provide me with a plausable answer?
~~We incorporated through www.smallbiz.com and they are awesome. They handle all 50 states, are extremely reasonable and have live help you can speak with if you have questions. I can highly recommend them.~~
Friday’s trading day was a game changer, the last hour rally was not one of just a short squeeze before a weekend but one that showed that we are now trading in a triangle formation and we could potentially break to the upside. I, However, suggest people play the triangle formation before getting all that bullish. The reason i have more inclination to the bullish side is because a triangle formation after a rally is usually looked upon as consolidation and the next move is usually a breakout to the upside, once that happens the market can shoot to the 1030-1040, and that will probably be the end of Primary wave 2, before a new bear market begins.
Duration : 0:4:58
Do you have any strategy to trade options only with safety strategy ?
Please advise…
Thanks
There is only one way to trade options safely. That is to learn enough about them to understand what the risks are and how to control them.
The major risk factors in options are represented by "the greeks" (delta, gamma, vega, theta and rho). Unless you are a very large trader you can probably ignore rho. The remaining risk factors can be controlled with offsetting positions.
I respectfully disagree with the other answers which indicated that you should sell covered calls. Selling covered calls usually leaves you with nearly as much downside risk as simply owning the stock. but limits your opportunity to profit on big changes in the stock price. Covered calls can work well when the stock is less volatile then expected, but it is a real loser if a lot of your stocks are more volatile than expected.
Shares of stock have a higher delta risk than any options, and selling covered calls usually does not reduce that risk very much. (Covered calls can reduce delta risk significantly if they are in the money when sold, but most people sell out of the money covered calls.)
If you want to trade options safely, I strongly urge you to read some good books about options.
The only requirements I remember encountering are having some experience in stocks (not options specifically) and the net worth requirement. And if you have absolutely no experience in stocks at all, options are not the place to start, I think.
i m trading in only cash segement , i don’t know call/put option trade or f n o trade, so guide me
If one has no idea what an option is, one should not be trading them.
I would start learning about options here for FREE from people whop having to sell you.
http://www.optionseducation.org
http://www.optionseducation.org/classes/