Archive for the ‘trade stock option’ Category
I want to buy msft and sell the covered call at the same time
is this possible?
similar to how a broker takes a put spread or call spread but I am buying the stock
What brokers will let me do this?
i want to be able to execute the trade at the same time like a call or put spread
<<<is there any way i can trade a stock and a call option at the same time for example?>>>
Yes. It is called a spread order.
<<<I want to buy msft and sell the covered call at the same time
is this possible? similar to how a broker takes a put spread or call spread but I am buying the stock
>>>
Yes, you use a spread order called a "buy-write."
<<<What brokers will let me do this?>>>
Any broker should allow you do enter a buy-write order. For example, today (Friday 1/23) MSFT closed at $17.20 and March $19 call option had a bid/ask of $0.45/$0.48. You could have placed a buy-write order before the close that said "Buy 200 shares of MSFT and sell 2 MSFT March $19 call options for a debit of $16.76 per share."
I don’t know how many brokers allow you to enter buy-write trades on-line, but you should always have the ability to enter a buy-write by calling your broerage.
Hey guys,
Today i only focus on the SPY and give you my ultimate trade. Where I plan to go short, and where i tell people to be-careful in going short. I analyze the markets based on the rising channel which has been very evident to me. The 38.2% retracement is only 0.5% away and with such an overbought condition (never seen before) the next strong move will probably be to the downside.
Play the channel, don’t be foolish.
Best,
Idan Koren
Duration : 0:4:49
Today I looked at the incredible action that we got from the S&P. A 3% move higher is very strong price action, and even though it looked very unpredictable and the volume was incredibly low, it must be respected and the bulls might get the benefit of the doubt for tomorrows trade. There was some amateurish action in the last 30 minutes of trading which lends itself to a potential gap lower into tomorrow, but there a strong levels of support which could reverse the market action back into positive territory and take us to a double top region on the SPX. The bull seem to want to reach the 200 SMA daily, and that would probably be a great place for the shorts to pile in. I believe having a small bullish bias before hitting that level could be profitable and covering any shorts into a 38.2% retracement at 898 could be the wise trade. In this video I also look at GS, SPY, VIX and SRS.
Duration : 0:9:16
I would guess that only when an option is exercised that the stock price is affected. Is that correct?
Option trades are important to stock prices in several ways, particularly low-volume stocks:
1) If there is a big option trade, it could be an indication that the "smart money" knows something. For example, the SEC is investigating some March BSC puts at $2.5 that were bought while BSC was in the 50s two weeks ago
2) I’ve found that for low-volume stocks, stock prices often "stick" near option strike prices near expiration. For example, if the strike prices are $20, $25, $30, then the stock would be more likely to trade near $19-21, $24-26, $29-31, etc. during expiration week.
3) The put/call ratio is often a good contrarian indicator for price movement. When the option market is extremely pessimistic, lots of puts are sold (the buyers think the stock will go down) so the ratio goes up. The market usually ends up higher when the put/call ratio spikes up.
BTW, as others have mentioned, I don’t think that option exercising affects the prices much either.
Today I look at the SPY in more detail, explain what I think is about to happen, and even though the market did make new highs today, CNBC should stop sugar coating the bearishness which still prevails. I talk about the longer-term ramifications of this market, and where it’s poised to reverse. I point out my trades of CM and BIDU and how i took them out pretty much flat out even despite the rally and my GS trade which i timed really well to take profits on yesterday. I also look at the Dow Jones and how it reflects chartology so well.
Duration : 0:5:1
CBOE
Chicago Board of Options Exchange
The options Institute
Free learning tools on-line and free seminars.
http://www.cboe.com/LearnCenter/default.aspx
PS Avoid all those on-line off line trading schools that charge an arm and leg. They are all hype.
– 20 year veteran trader (see my bio)
http://support.theoptionclub.com
**Free Options Trading Mini-Course**
====================================
Would you trust someone to pilot a jet aircraft after they attending a 2-day hotel seminar on jet aircraft technology?
How about allowing someone to perform surgery upon you, after spending a couple days in medical school?
Of course, not!
Trading in the financial markets is no different, and this is especially true when it comes to options trading. options are sophisticated financial tools that demand a minimum level of knowledge.
Just as a pilot or a surgeon spend a good deal of time learning the fundamentals and practicing their skills in controlled settings, professional traders follow a similar path.
No one is looking out for us retail traders, however. If you want to simply “jump in” there will be no one to stop you.
TheOptionClub.com provides a free option trading course that provides an introduction to the subject of options and offers some thoughts on how to trade them.
We are also able to guide you to more advanced training. Start learning the basics today at:
http://support.theoptionclub.com
TheOptionClub.com
Duration : 0:6:3
I’m currently with sharebuilder because they didn’t require a minimum… I’ve since gotten heavily invested into stock trading/option trading… I don’t believe this is the best site for trading options, because I cannot find some of the quote symbols I find on other sites. Let me know.
If you want a cheaper alternative to Sharebuilder that also does not require minimums, you should check out Firstrade http://www.firstrade.com/
I know quite a bit about the stock market and i was woundering if i could start a busness whos sole purpus is to make money thrugh the stock market. what about an LLC?
Yes you can. One example Is Warren Buffet’s company thats what they do.
I don’t know nothing about stock option, but i’m really interesting in this. I’ve found a lot of seminar that offer how to gain high profit from stock option & the testimonial the success people from stock option. Could you share what is the risk & benefit entering stock option market? How to analysis?How to manage the risk?& what is the strategies? How to trade & the step to enter this market? What’s the tools? What’s the different between the usual stock market? Thanks a lot
CBOE has a very nice online tutorial, after all this is where all options are traded
CBOE = Chicago Board of Options Exchange