Archive for the ‘trade options’ Category
For example, PGLA or MLPH. These are traded stocks, but I can’t find a site that offers options on these stocks. What is the reason for this?
Stocks that are not big enough or active enough typically don’t have the interest to support options. Really its just that nobody is will to write the options on those stocks, nothing more.
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’m going to begin discussing that.
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 : 0:2:26
http://www.tradingoptionslab.com/track/go.php?c=inside
Overview: While the majority of traders hope to make a profit trading options, we take a more business like approach and hope has nothing to do with it.
Trading options to us is entrepreneurial. We take advantage of market opportunities, build positions, manage a portfolio and generate profits trading options based on:
1. fundamental business principles and
2. market truths
We are not investment advisers or financial planners, we are retail investors like you. We do not not manage money and we do not make recommendations on any stock or option investment. We trade our own accounts.
Our purpose for establishing our training program and this website is to provide education to retail investors like us who want a smarter, simpler, less stressful and more profitable way to trade even with limited capital.
Business Principles:
We pursue opportunities in the market and then manage those opportunities based on the numbers.
All successful businesses manage their activities based on certain numbers: key ratios, profit and loss, conversions, overhead and more. That is what we do: manage our investment business by the numbers.
When a number is off we dig deeper into our business activities to see where the problem lies and make adjustments to our portfolio so that we generate the maximum amount of profits for the capital we invest, just like any good and successful business.
The only thing that matters in business is ROI (return on investment). In our type of business, we regard ROM (return on margin) as our ultimate goal. That is the name of the game and we never deviate from it because the numbers never lie.
The Only Truths of the Market:
For stocks there is only ONE Absolute Truth:
1. All stocks fluctuate in price.
For options there are only TWO Absolute Truths:
1. All options fluctuate in price.
2. All options expire.
The top traders in the world learn to respect these rules because they are the only truths of the market.
You might think there are other truths but there are not – everything you hear about the market outside these 2 rules is hearsay, opinion, commentary and even complete fantasy.
We are investing as entrepreneurs – we watch for opportunities, create a plan for trading activities based on solid business principles, plot our expected ROM (return on margin) and then manage those trades by the numbers.
How Do We Trade This Information?
We take these Market Truths and design a trading strategy which means taking advantage of market opportunities and building positions and portfolios around them. As we know its impossible to predict the future and that the market can be irrational and cause large losses at times for the average retail investor So instead of predicting market behavior we create fluid positions that are managed and adjusted according to market conditions so that we are always allocating capital as new opportunities present themselves.
The one art most retail investors are not taught is how to adjust positions once they are placed. Learning the art of adjusting trades is the insiders edges over retail investors- but not any longer. Once you learn how to adjust a trade so that it makes money (instead of losing money) you will be amazed at the results.
All businesses have risks. In this business there are 4 risks but the risks can be managed. And, it takes 15 minutes – sometimes less – a day to manage these types of positions.
If you are interested in learning more about how we trade as a business and get information on our home study course we have developed, watch the videos that are available on our site – no email address or registration is required. And when you are ready to learn the EXACT way to trade for monthly profits and with total confidence go here to sign up for our course:
http://www.tradingoptionslab.com
On our blog, we will provide free videos on an occasional basis so if your are interested in getting notified when they are available sign up with our newsletter.
Duration : 0:8:35
Interactive Brokers doesn’t allow me to sign up for options trading because I’m not 21 yet, but they do allow stock trading. I’m 19. Is it legal for them to do that? Where is the law that says it’s legal? What basis do they have for denying me trading options with them due being less than 21. 18 is the legal adult age in US.
I’m almost 20 and have 1.5 years investing in options. I just used a different broker Ameritrade.
I don’t know the specific laws that but imagine that it is similar to car rental companies and the liability issues surrounding their decision not to rent to young adults. Even though you are an adult, your years of investing experience as an adult are going to be below the level where they are comfortable with the risk associated with turning options on for your account. You can really destroy capital exceedingly quickly with options if used in an aggressive way. You’ll probably find the most luck asking them to first turn your account on for covered calls only, and then after some time passes with that turned on ask them again for full options privileges. Good luck!
When looking for an online trading broker, be sure to compare how much the cost per trade is and the charge per lot. Find an online trading company, but always read the restrictions before signing up with them, with tips from a futures and options floor trader in this free video on investing.
Expert: Mark Griffith
Bio: Mark Griffith has graduated in economics and philosophy at Clare College, Cambridge. He has been a futures and options floor trader at LIFFE (London International Financial Futures Exchange).
Filmmaker: Paul Volniansky
Duration : 0:3:10
Im a 21 college student and have decided to take a small amount of risk in the market, perhaps trading options. I have an account with the online broker Scottrade that has a value > 25000. I turned in the paperwork for trading options. So if I were to invest a small amount of my portfolio into a call option for (X) tomorrow morning, what steps do i need to take (besides filling out the order form i know how to do that)? Do I have to own shares in (X)? Also it’s a $1.25 per contract, so does that mean for each single option I buy it cost $1.25? I just started a course in investments and will learn more about options later this semester, I just want a head start and possibly make some money. Thank You.
Requirements:
Generally brokers have different options approval levels– the lowest level allows you to sell options on stock you already own, the second level allows you to buy calls or puts, and the last level allows you to sell options on stock you don’t own.
I suspect that any broker will give anyone with at least a modicum of stock experience the right to sell options on stock they already own (this is called a covered call.) Since you’re merely agreeing to sell property to a person at a certain price, this is fairly safe and you generally cant get into too much trouble.
Buying long calls and puts is riskier, and your broker will probably expect you to have experience trading stocks and options before letting you pay with these.
Selling options on stocks you don’t own (naked calls or puts) can be extremely dangerous and brokers will expect you to have a good deal of experience before approving you.
Personally I like selling calls on stock I already own. Buying options is a good deal riskier, and I’d advise you to start out with extremely small sums. Also I’d advise buying relatively long term options, as these give the stock you own more time to move dramatically in the direction you want.
And generally brokers charge a flat fee for buying options, plus a smaller fee for each contract purchased (for example etrade is 9.99 + 0.75/contract)
Finally try tradeking or zecco. They’re both very inexpensive, and seem to be pretty willing to give out options approval through at least level 2.
The Bulls and Knicks have been talking with each other on trading Bulls Forward Tyrus Tomas, & Jerome James and Knicks Forward AL Harrington for a trade!
Duration : 0:1:43
Trading stock options is risky and there are a lot of people who lose money in the stock market, but I know there are people making money out of this thing, is there really a way to trade options and make a profit from this?
To make a profit trading stock options, you need to have a system in place that will help you through the up and down trends in the market. Check out http://www.StockoptionsTradingSystem.com for some really good info on how to make money trading stock options.
I want to trade options but I do not want to be assigned to a buyer or seller which makes me obligated to buy or sell an underlying asset. I have a little money but I do not own stocks.
Yes. You can purchase (or go long) the options. If you purchase calls, it gives you the option to purchase stock at a particular price (strike price). If you purchase a put, it gives you an option to sell the stock at a particular price (strike price). Basically, "Put the stock to another person".
As a purchaser, only you get to make the decision as to whether you want to exercise your option right or not. But they can auto-execute if you are in the money at expiration.
I suggest that if you have little money, you would be better off not playing around with options. As a heads up, if you think you have information that other’s don’t, that’s called insider information (remember Martha Stewart). It is illegal to trade on non-public information.
See link below for more:
http://search.cboe.com/cgi-bin/MsmGo.exe?grab_id=0&page_id=17109&query=characteristics&hiword=CHARACTERISTIC%20characteristics%20
I was approved for an account and for options trading. Then after I wasted a week waiting for them to allow me to trade options I got a letter saying that my credit is not good enough for them to let me trade options.
I am closing my account with them. What broker is likely to allow me options trading without credit checking?
Thinkorswim is a awesome brokerage that is a must for options trader. They don’t have any options levels like most brokerage or credit checks. Their software is the best for options analysis. Best of all there is no additional brokerage fee with them. Also commission is competitive because they will match most brokerage commissions.
The software is a bit complex but if your serious about the software I can give you a quick tutorial. Contact me for details