- How To Read Options Listings
How To Read Options Listings Options price listings vary in appearance from site to site, but most will contain the following basic information. Here's a breakdown of what they list and what it...
- Intro to Technical Analysis for Non-Dummies
Intro to Technical Analysis for Non-Dummies There exist today an array of charts, patterns and statistical analyses large enough to please even a Medieval numerologist. Though it often looks and...
- Options and Futures: Risks and Advantages
Options and Futures: Risks and Advantages The terms 'options' and 'futures' appear together often enough to confuse even knowledgeable traders into thinking they are the same thing. But, while they...
- Options and Leverage
Options and Leverage Why do options offer any advantage over trading stocks? They're riskier, since they expire within a certain amount of time and their values are more complicated to assess. Since...
- Options Calls and Puts
Options Calls and Puts Options are contracts on some underlying trading instrument - shares of stock, bonds, a commodity, a mortgage loan, etc. (The list is endless.) But regardless of what the...
- Options Hedging, Trim Risks Not Bushes
Options Hedging, Trim Risks Not Bushes Options are frequently used in hedging. A hedge is an investment made to offset the risk incurred by entering another investment. Ironically, the basic idea is...
- Options Risk Management
Options Risk Management There are more kinds of risk than there are investments, since every instrument carries several kinds. But risk isn't inherently bad. Without it there'd be fewer opportunities...
- Options Volatility
Options Volatility Because the actual calculation, and sometimes even the discussions, of volatility involve some fearsome mathematics, novice options traders often forgo learning about it. Those...
- Trading Strategies, Profit and Risk
Trading Strategies, Profit and Risk Risk isn't inherently bad. Without it, there would be far fewer opportunities for profit. In particular, there would be no options market at all. No one would have...
- Values and Prices - Part I
Values and Prices - Part I Unlike stocks, options have an expiration date. Unless a company goes bankrupt or buys back all its stock, the stock investor always has the choice to wait for a price...
- Values and Prices - Part II
Values and Prices - Part II In Part I, we outlined an example. MSFT (Microsoft) stock with a current market price of $27, and a June 30 call option with premium of $2. (I.e. an option whose...