An option strategy is implemented by combining one or more option positions and possibly an underlying stock position. Options are financial instruments that give the buyer the right to buy (for a call option) or sell (for a put option) the underlying security at some specific point of time in the future (European Option) or until some specific point of time in the future (American Option) for a price (strike price), which is fixed in advance (when the option is bought).
Calls increase in value as the underlying stock increases in value. Likewise puts increase in value as the underlying stock decreases in value. Buying both a call and a put means that if the underlying stock moves up the call increases in value and likewise if the underlying stock moves down the put increases in value. The combined position can increase in value if the stock moves significantly in either direction. (The position loses money if the stock stays at the same price or within a range of the price when the position was established.) This strategy is called a straddle. It is one of many options strategies that investors can employ.
I was looking at buying 100 contracts on the Jun 21 Call of TTWO at a 2.90 Premium and strike of 17.50 (+TUOFW) on Ameritrade. There aren’t too many...
Once an option reaches its "strike price", then the option contract can be "exercised", correct? All the website tutorials say th...
i wanted to know how much capital to start option trading and also could anybody give me a good site for tutorials so i can practice also as a beginne...
Hi I am currently a soph. in college and was wondering what I could be doing to help me pursue a career as a trader. I interned at a hedge fund last ...
I just finsihed reading Trading for Dummies and really want to learn more before I start trading in stock options, is there a course I can take online...
I received an ad in the mail and wondered if it is a legitimate course?
I want to become a pro-trader so I find some commodity seminars, future trading seminars, options trading courses that will give me the trading mindse...
Good morning everyone. Okay, I've been trading stocks for about 3 years now and have become interested in option trading. I've noticed a lot of good o...
Want to learn how much capital I need to start trading options with on a small scale and work my way up.
I think I understand the basics of option trading like calls and puts. What I need help is why an option May put has a strike price of 55 when it's u...
For index option trading, there is a 60/40 rule. 60 percent of the profit is considered long term capital gain. 40 percent is considered short term ca...
I am trying to learn more about option trading. I know how to use calls and puts and have made money doing this. But I now want to get involved in s...
I just learn option trading and I don't know how to use the call spread. Any ideas? Thanks.
Good morning everyone. Okay, I've been trading stocks for about 3 years now and have become interested in option trading. I've noticed a lot of good o...
I'm looking for a free, no obligation site. I know very little about option trading and would like to learn simplified methods from the beginning.
Anybody can tell me how forex options affect forex market? Do they actually affect the market only when they are exercised? Does an exercise of a fore...
Hello guys, I'm interested in learning more about forex, options and futures trading. I heard that there are mini or micro account that can go as l...
Looking for forex options site.
Are stock options gains (selling calls) taxed the same as short-term gains on stocks, or is there a different set of rules? And forex?
I am 18 years old and I am considering trading currencies as a home based business. I've had practice with ordinary spot forex and find it okay. I wan...
Ive been looking everywhere for this. i need a free (hopefully) website that has quotes for forex option chains like EUR/USD 1.40 Jan call anyone ...
My company is offering it's employees stock options that we have to option to exercise in a few months. My co-workers were saying that the value of th...
A quick search on "stock options" shows that many companies are switching from "stock options" to "restricted stocks" as...
I've noticed in the past few weeks at the company I work for (a 6-billion dollar company) the officers are exercising their stock options. The compa...
I want to know how much stock options a company is issuing, ie what % of net income is actually being stock options. Example Dell made $3 billion but ...
If a public company gets taken over by private equity investors, what is the typical handling of employee stock options ? The stock options are given ...
In other words, if I buy a call option that expires in January 2010, and the company is aquired before that time, what happens to my right to buy shar...
I would like to learn on my own. Are there any free sites or good books that would include the ticker symbols so that I can virtual trade them for pr...
I've heard that trading in the stock options market can be very rewarding but where can I learn how to do this?
When I say "where" I mean any good books or websites or strategies? If you have small amounts of cash is it better to use it on penny sto...
Also, are there any advisory companies that help you with selecting good option buys? I realize all of these are fairly pricey but do any of them hel...
I've seen the web based sites, BUT I need a teacher, so I can ask questions. I need homework and tests so I know if I'm learning. I need instruction...
i LIKE TO LEARN HOW TO TRADE OPTIONS IN A DOWN MARKET, UP MARKET AND SIDEWAYS MArKET WITHOUT SPENDING THOUSANDS OF DOLLARS.
Can anyone recommend a good options trading software around $200/month? Thanks for your help.
options trading software for indian market
I was gifted the options software for Wizetrade. With limited capital ($1000-$2000) is this a good idea to pay for the service and try and use this as...
About how much would it cost to develop software that could make about 1000 calculations per second, grab dynamic information from the web or another ...
is any one heard about binary option trading platform like www.onehouroption.com and www.anyoption.com/comb_939.html
I use scottrade and they are limited in what you can trade. No spreads or straddles either.
Where can I learn about trading options from somewhere other than the internet? Where can I learn from teachers or mentors almost like a school? Are ...
Is there a website out there that lets you interact with those trading screens and lets you play with practice accounts? Options trading is prefere...
I have a pretty good undertsanding of stocks but i have no clue what options are.
What the best way to learn options trading, possibly with simulated account or software to create practice deals before putting my cash on the line?
i have just strted to trade in options. but i dont know, anything in it. i mean which contract to buy and wer to keep stop loss. i also dont know opti...
I would like to learn on my own. Are there any free sites or good books that would include the ticker symbols so that I can virtual trade them for pr...
For a class project a group of us need to do a presentation on a company that uses commodity options in their business using real date on that company...
Best resources, timely executions and cost efficient. Ha, ha thanks endless and will take your advice. I'll talk to them as local yokel charges more ...
I want to be some sort of day trader when I'm older. What are some good majors to have so when applying for a position in a firm, you look like you ha...
I am trying to learn about the different things you can do to make money using options, i.e. Short-Selling, Long-Selling, Puts & Calls, etc. I kno...
I want to become a pro-trader so I find some commodity seminars, future trading seminars, options trading courses that will give me the trading mindse...
What on line options brokers offer flat rate commission? I used to use optionshouse.com, but they sent me an email that they will change the rate to $...
I have some earnings from trading in options on stocks in the share market. My broker has informed me that no form 1099 is issued in respect of earnin...
Excluding Interactive Brokers, it is not good for margins.
I'm talking about shorting puts and calls, not buying a put. I'm opening a margin account at one broker and I will ask them, but if they tell me No, ...
How does Scottrade compare? (my current broker)
I would like to buy stock online but would prefer Paypal to any other money transfer system. Is this possible?