Top 5 Option Trading Myths “Demystified”
Many traders have doubts about options trading and most of these doubts usually arise out of fear because either options are a foreign concept or you have heard troublesome stories. However, the truth is that options offer numerous benefits and carry about the same risk as stocks, so there is no reason to...
Recent Posts
Posted by
A Mahendra on
Mar 3rd, 2010
Posted by
A Mahendra on
Mar 3rd, 2010
Posted by
A Mahendra on
Jan 10th, 2010
Bear (Long) Put Spread...
A bear put spread is a fundamental bearish spread in options trading, composed of two put options with different strike prices that expire in the same month, where a “HIGHER” put strike is purchased and a “LOWER” put strike is sold,...
Bull (Short) Put Spread...
A bull put spread functions in the same manner as a bull call spread, except that put options are used rather than calls options to initiate the trade. In a bull put spread, a “LOWER” put strike is purchased and a “HIGHER” put strike is sold,...
Jan 2010 Pullback...
Posted by A Mahendra on Jan 25th, 2010
Last week (Jan 19th to 22th) we saw a pullback in all three major indexes associated with the uncertainty surrounding regulation for the banking industry and whether Fed Chairman would be confirmed for a second term. Over a period of 4 days, the DOW dropped almost...
Bear (Short) Call Spread...
A BEAR CALL SPREAD (short call spread) is a fundamental bearish spread in options trading, composed of two call options with different strike prices that expire in the same month, where a HIGHER call strike is purchased and a LOWER call strike is sold, simultaneously....
Options 101
Options Greeks Explained: Theta
Given that options are a contract that expires at one point or another, the option greek “theta” provides a measure of time decay or the change in an options value with each passing day. Remember that at expiration, options only contain “real” value as the “time” value...
Given that options are a contract that expires at one point or another, the option greek “theta” provides a measure of time decay or the change in an options value with each passing day. Remember that at expiration, options only contain “real” value as the “time” value...
Basic Strategies
Top Reasons Why Beginners Lose Money
Trading options is not easy…… It takes time to learn the various techniques and get a feel for how options work, but its not any different than trading stocks and to be successful you have to put in the time. I am going to cover the TOP 5 Reasons why beginners fail to make money or lose money...
Trading options is not easy…… It takes time to learn the various techniques and get a feel for how options work, but its not any different than trading stocks and to be successful you have to put in the time. I am going to cover the TOP 5 Reasons why beginners fail to make money or lose money...
Advanced Strategies
Bear (Long) Put Spread
A bear put spread is a fundamental bearish spread in options trading, composed of two put options with different strike prices that expire in the same month, where a “HIGHER” put strike is purchased and a “LOWER” put strike is sold, simultaneously. Think of the basic definition of...
A bear put spread is a fundamental bearish spread in options trading, composed of two put options with different strike prices that expire in the same month, where a “HIGHER” put strike is purchased and a “LOWER” put strike is sold, simultaneously. Think of the basic definition of...
Market Thoughts
Jan 2010 Pullback
Last week (Jan 19th to 22th) we saw a pullback in all three major indexes associated with the uncertainty surrounding regulation for the banking industry and whether Fed Chairman would be confirmed for a second term. Over a period of 4 days, the DOW dropped almost 500 points since it peaked on 19th Jan,...