Options Trading Tutorial | Basic Options Trading for Beginners

Binary Options Hedge vs Trading Barrier Options

2011-12-14T05:53:00.000-08:00

Are Barrier Options the Right Choice for You? Before one considers trading barrier options one should also consider the similar alternative investment, the binary options hedge. Although the investments are very similar in terms of in the money yields offered, the risk characteristics are considerably different. Many times the determining factor in deciding which asset to trade comes down to a

Online Options Trading Basics

2011-06-17T06:55:00.000-07:00

Here are a few online options trading basics anyone interested in trying to make money by investing in stock options. We'll try to cover anything and everything we can think of from deciding where to open an account to what to expect from your first trade. It is my hope by the end of this you have a good idea what trading options is about and have the confidence and knowledge you need to make

How to Hedge Stocks

2011-06-14T11:30:00.000-07:00

Knowing how to hedge stocks owned in a portfolio is one of the most important aspects of maintaining a portfolio of equities. Figuring out how to hedge stocks in your specific portfolio will be a different problem than how I hedge stocks in my portfolio - as our investments and timeframes will differ. Here are some guidelines as to how to hedge stocks in your equities account based on what types

Investments for Inflation

2011-05-05T07:28:00.000-07:00

"What investments for inflation are going to be effective today?" That's a question I get asked on a regular basis these days. I have to say this is a question that is of great concern to me as a person living in America. Investments for Inflation: Is It Time to Jump Ship?The economic picture in the US may be deteriorating again, and I have been struggling to find the right answer to the age old

Trading Options Course | Put Options

2011-01-18T06:32:00.000-08:00

In the next part of our trading options course we'll start talking about put options, the opposite of call options (which we discussed in an earlier post). Put Options Represent the Right to SELLFirst and foremost put options represent the right to SELL an asset. The asset can be any number of things ranging from stocks to currencies to indexes to interest rates. How you as investor profit from

Options Trading Tutorial | Call Options Explained

2011-01-10T19:27:00.000-08:00

In the next post of the options trading tutorial series we'll talk about call options. A call option represents the right to buy a specific number of shares of a company or other asset at a specific price on (or before - in the case of Standard -or American- options) a specific date. Call Options ExplainedA call options trading tutorial has to talk about three critical pieces of information: the

Carry Trade Explained - How Forex Trading Makes Money Long Term

2010-11-08T09:00:00.000-08:00

The carry trade is one of the less understood ways to make money investing, but ultimately is used by all of the largest, most sophisticated investors to preserve wealth and diversify risk amongst economies. I took time out to write a series of articles about the carry trade, and forex trading in general. Here is a brief piece published around a week ago which scratches the surface with more

Options Trading at Expiration Can Be Playing with Fire

2010-06-17T17:32:00.000-07:00

If you are options trading near expiration and are a retail trader like I am - boy you can be in for a rude wake up call if your contracts are just barely at the money. Ever Heard of Automatic Options Execution?Yeah, odds are your broker features automatic options execution on contracts that expire in the money without being exercised or sold/closed out prior to expiration. What this means is

Most Profitable Stock Picking System

2010-05-16T14:52:00.000-07:00

The most profitable stock picking system for a retail trader like you and me is going to involve finding stocks that MOVE. The beauty of the life of the options trader is that we don't care which DIRECTION the movement comes (so long as we forecast it correctly). We are much more concerned with the SIZE and FREQUENCY of movement instead (unless you are trading binary options, which only require

Cash Is King for the Options Trading Icon

2010-05-15T04:32:00.000-07:00

In options trading Rule #1 is: Cash - IS - KingSums it up, doesn't it? Why is it that such a simple concept get so easily lost amongst day traders. Aggressive and smart people are humbled over and over again by the market. WHY? Simple: Because they forgot rule #1: Cash-IS-King I have seen far too many traders get greedy and take on positions far larger than their ability to manage or

Establishing Your Comfort Zone for Options Trading

2010-05-14T01:03:00.000-07:00

Establishing your options trading "comfort zone" is the most important step to take before taking the plunge and making trades. What kind of "comfort zone" am I talking about? I am talking about making trades using options contracts which require no further attention on your part and give you the ability to walk away from the computer terminal and not look back. And oh, by the way, the reason

How Options Trading Is Like New England Weather

2010-05-12T15:29:00.000-07:00

From the title, "How Options Trading Is Like New England Weather" you ought to have a pretty good idea about where I am going with this post. What we're talking about is getting a price you like for the securities you want, in this case options contracts. An Options Trader Must Be DisciplinedThe retail options trader has to be very patient and disciplined in trading. What this means is

Options Trading Tutorial - Surveying the Underlying Economics

2010-05-11T16:23:00.000-07:00

Welcome to my options trading tutorial on blogspot. I wanted to jot down some thoughts on how I identify and exploit trading opportunities in the derivatives market to make a few extra bucks every month. Options trading isn't for everyone, and the strategy / style of trading I discuss here honestly requires a lot of confidence and patience in the face of an adverse market. Options Trading in an