Category Archives: Trading

The four basic options trading strategies and risk profiles

Mar 29,2008 | (6) | Filed in: Trading

I am going to describe the potential risks and rewards associated with the four basic options strategies. Options are one of the most versatile trading instruments ever invented. They provide a high-leverage approach to trading that can significantly limit the overall risk of a trade, especially when combined with stock or futures. As a result, Read More…

By James | Tagged bear market, bull market, Buying A Call, Buying A Put, futures, Investment Vehicles, options, Options Pricing, Options Risk Profiles, Options Trading, Security Price, Selling A Call, Selling a Put, Stock Price, Time Decay, Trading Strategies | Comments (6)

How To Understand Options In Only 5 Minutes Starting From Scratch

Mar 20,2008 | (7) | Filed in: Trading

Understanding what options are, how options are used, and why options may be appealing in a successful trading strategy never used to be easy to understand for me (and I don’t think for many others for that matter). After doing a course in financial mathematics a couple of years ago, I could calculate the value Read More…

By James | Tagged Call Option, Financial Instrument, Financial Mathematics, futures, George Fontanills, Guy Cohen, Investment Vehicles, Market Factors, Option Premium, Option Rights, options, Put Option, shares, stock market, Strike price, Successful Trading, Trading, Trading Stock, Trading Strategies, Understanding Options | Comments (7)