Category: OPTIONS BASICS

What is the obligation in trading options?

What is the obligation in trading options?

In terms of trading, there is no obligation to trade.  You can trade what, when and where you like. I believe, in my experience, no options brokers will force you to trade or ask you to commit to any trading activity in order to maintain your account. Your money can sit there and likely to [...]

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Options Explained

Options Explained

A contract to buy or sell a definite financial product referred to as the option’s underlying instrument

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Options Risk

Options Risk

A good number of the strategies employed by options investors have limited option risk.

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Options Pricing

Options Pricing

There are two major components of the option’s premium; these are the intrinsic and the time value.

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Options Exercise and Options Assignment

Options Exercise and Options Assignment

Options Exercise; a situation where the American-style options holder makes a decision to exercise right to purchase

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Index Options Trading

Index Options Trading

Index options provide the investor an occasion to take advantage of an anticipated market move, or to

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6 Basic Risk Graphs in Options Trading

6 Basic Risk Graphs in Options Trading

Understanding these basic 6 risk graphs and drilling them into your brain are very important to you as an options trader

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Fixed Return Options

Fixed Return Options

Fixed Return Options (FROs) is a new form of stock option which is now accessible by the general investing public.

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ETF Options, Exchange Traded Fund’s Options

ETF Options, Exchange Traded Fund’s Options

Just like indexes and equities, there are several ETFs that list options. There are several derivative strategies

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Equity Options, Stock Options Trading

Equity Options, Stock Options Trading

Equity options are actually contracts that are negotiated between an option writer or seller, and an option holder or

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