Category: OPTIONS BASICS

3 most important options trading areas to keep in mind

3 most important options trading areas to keep in mind

There are 3 areas of trading:  All of them are essential to any successful trading approach.

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Options on Exchange Traded Fund ETF – Contract Specification

Options on Exchange Traded Fund ETF – Contract Specification

Underlying The standard is 100 shares of a exchanged-traded funds or HOLDRs.

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2 Crucial Trading Lessons For New Options And Future Traders

2 Crucial Trading Lessons For New Options And Future Traders

One of the more common traps that you may fall into is

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Call Options Supposed to Expire But I End up with Stocks?

Question:  I owned some call options in long position and going into the expiration it looks like it is going to expire worthless out of the money.  Why would I have some stock in my account the following Monday. Answer:  What happened was at the last minutes or hours the underlying stock rose and moved [...]

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OptionsXpress’s Retail Options Trading Down 12% From 1 Year Ago

OptionsXpress’s Retail Options Trading Down 12% From 1 Year Ago

OptionsXpress’s Retail Options Trading Also Down 10% From April (Dow Jones Newswires) OptionsXpress Holdings Inc. (OXPS) has just reported that their retail options trading volume was down by 12% in May compared with May 2010 and also fell 10% from last April.

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Options Trading Invesors Caustious on Industrials

Options Trading Invesors Caustious on Industrials

Options Trading Investors Trade Ford, But Are Cautious on Industrials (Wall Street Journal) This week, some options trading investors were trading Ford Motor in order to have a short-term rise while other options trading investors were being cautious over the whole industrial sector.

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5 rules of ordering an options trade

5 rules of ordering an options trade

The last thing you have to do after all the hard work on market research is ordering the trade.  You would not want to let last step throw you off balance. Here are 5 fundamental rules to learn by heart: 1.  Use Limit Order religiously to Open a Trade: How many times you use market [...]

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Technical Analysis – Introduction to Top Down Analysis

Top down is the most popular and used analysis in the community of trading professionals and market analysis.

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Options Value – How to Calculate the Intrinsic and Extrinsic value

Options Value – How to Calculate the Intrinsic and Extrinsic value

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Bull Call Spread Simplified – Real Life Example

Bull Call Spread Simplified – Real Life Example

Bull Call Spread or sometimes called Call Debit Spread is another vertical options strategy to make money when market or a particular underlying stock is going up. This type of trade is referred to as debit because a trader needs to pay upfront out of his account and no margin is required. The name Bull [...]

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