Options are nothing more than a contract with a specified premium, strike price and expiration date. Unlike buying and selling stocks or funds of stocks, options provide almost an endless number of strategies. Nevertheless, all options trading has two sides — calls and puts. Both are “sold” by an options trader. You sell a call […]
The consensus on options trading is that it is risky for the average investor. You’ll likely hear stories about people losing large sums of money in the options market. This sentiment about options being risky can be warranted. However, it often comes from a lack of understanding about how the options markets work. This article […]
When you begin trading options you’ll spend part of your research scanning for the right options to buy. When you find a list of options, then you’ll need to learn how to read the quotes to pick the right one. Quotes on stocks are simple. They involve entering the ticker symbol of the stock into […]
Selling put options can be a great way to help increase the value of your portfolio without taking on too much risk. At its core, a put sale allows investors to get paid to potentially buy shares of a company they like at a price they like. But what if you have no interest in […]
Most people often have a notion of what volatility means. They understand, at least conceptually, that it has to do with data of situations that vary over time. Weather is one example. Investments are another. Volatility when applied to the stock market is a fuzzier concept to many. It is one of the main factors […]
You may have heard it before. When you buy an options contract, you obtain the right to buy (for calls) or sell (for puts) shares of stocks before a predetermined period. You are not required to buy or sell, however. The price that you buy and sell is known as the strike price. The predetermined […]
“I’ll buy it when it’s a little cheaper.” It’s a common statement made by investors. Unfortunately, for those on the fence about buying shares, that day rarely comes. When a stock does get cheap enough, markets may be in selloff mode, and then the potential buyer still sits on the sidelines. But there’s a way […]
At some point in your options trading experiences, you’re likely to read or hear about “Greeks.” You may think that someone is referring to what type of food they want for lunch. However, in options trading it has to do with indicators on options prices. This article will help you get up to speed with […]
Most investors have heard horror stories about buying and selling options. And they are all true! Some of those stories are when someone has placed all their investment capital into one stock and prayed that it will go up. This isn’t investing. It’s rolling the dice at a casino. The house always comes out ahead. Let’s […]
Gold and silver have been on tremendous runs lately. Gold is up over 40% from its March low while silver has more than doubled. If you are long precious metals stocks, metals ETFs, or the metals themselves, congratulations on your gains. At this point, however, you might be asking yourself it’s time to look at […]
