Options Trading
Trade options intelligently.
Viewing entries tagged profit
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Today's main event :Standard & Poor's president Deven Sharma resigns...
Standard & Poor's president Deven Sharma steps down followed by the credit rating agency's decision to historically downgrade US debtis.
Economic event : New Home Sales For July will be published at 10:00 AM , Prior - 312K , Market Expects 300K. This event will take second roll today. VIX cash did not move much, down by $0.61 to 42.44, VIX futures still implying a volatile market this time it looks like to the upside. The "UpDown" signals are an outcome of calculated calls and puts implied volatility.Positive numbers higher calls IV traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.
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| We have scanned for stocks with extensive options trading activity. |
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Yesrday's economic event : CPI, Core CPI...
Higher than expected CPI, meams, higher inflation to already slowing economy, ten year US bonds yielding historically record low 2.06%, we cant see it other than realy bad news. Even low price to ernings average ratio wouldn't help due to a deteriorating business enviroment. VIX cash rallied a $11.09 to $42.67 chalenging its last pick and most likely to break the ceiling. VIX futures still trades abnormally, still implying higher volatility. The "UpDown" signals are an outcome of calculated calls and puts implied volatility.Positive numbers higher calls IV traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.
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| We have scanned for stocks with extensive options trading activity. |
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Arbitrage opportunities appear here and there, all the time in the financial markets. Pure 100% risk-free arbitrage is hard to spot, however it is essential to understand how the markets offer this opportunity, and then apply similar principles on other trades,..... read more
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Option spreads are trading strategies involving taking both sides of an option trade, but in such a way as to achieve an overall lower risk / reward ratio than standard, outright option purchases. Generally, there are two types of spreads, Horizontal and Vertical. Horizontal means that we pick 2 option contracts,..... read more
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Forex options are very interesting trading vehicles, that offer greater flexibility than futures contracts do. Generally they are not very suitable for very short term intraday trading, however they are very useful in longer term trading. I have found out myself, being a forex futures trader is extremely hard.,..... read more
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I am sure we would all like to make a lot of money with the best option trading ideas. In fact, there are concepts and methods that can be implemented using a small options trading account, for example, using a $,2000 account, and risking $300 - $500 on single, selective, and fair probability trades. These are the trades that would have a smaller probability of going well, than the rest we usually do, but they can often have a huge profit potential. And I mean huge beyond anything you can imagine!..... read more
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We know that when we buy options contracts, we use the appropriate strategy and then attempt to make money either on the intrinsic part of the option premium (where Delta matters most) or on the extrinsic part of the option premium (where volatility matters most), beyond that, there are also.....
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The simplest way to make a smooth transition from stock trading to options trading, is to implement a straightforward, directional stock trading strategy, based upon your existing stock trading system, the only real reason you prefer options trading in this case, is because you can take advantage of the asymmetrical behaviour of Delta. That is what allows you to win $1,000 from a given stock price move, and only lose $700 if you are wrong and incur the same stock price trend on the losing side.
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