Options Trading in Extremely Volatile Markets
by Jason Ng
The recent stock market crisis (2008) made bankrupts out of countless stock and options traders all over the world. The insane volatility made profiting the usual way seemed almost impossible. So, how should one profit through options trading in volatile markets?
Option trading, stock options, Options trading, investment, market [...]

Learning Options- Part 4
In real estate, they say that the three most important things are location, location, and location. In options, the three most important things are volatility, volatility, and volatility. Often neglected by option rookies, volatility is the cornerstone of an option professional’s trading strategy.
In its simplest form, expressed as the annualized percentage of [...]

Learning Options- Part 3
Two of the more common option strategies are horizontal spreads (identical strike prices, different expiration days) and vertical spreads (different strike prices, same expiration day). Other spread types are combinations or variations of these categories: Diagonal spreads are a mixture of horizontal and vertical spreads; butterfly spreads combine two different vertical spreads.
Selling [...]

Futures Option Spreads - Delta Neutral Trading
by David Rivera
There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy.
Another way is to buy and sell options based on [...]

Option Trading – Calendar Spreads & Time Decay
by David Rivera
When traders speak of putting on calendar spreads, they normally refer to buying the further month options and selling the closer month option. While I can not argue with this, it is not best for all options.
I am going to be general in this article because [...]

Learning Options- Part 2
Many people like options because they believe them to be less risky than futures. Options sometimes offer reduced risk, but usually at the cost of reduced profit potential.
One drawback of options is that a trader must consider market speed (volatility) as well as direction. Traders who buy or sell options outright to [...]

Learning Options- Part 1
There are four components to an options price: underlying contract price, intrinsic value ( determined by strike price), time value (time remaining until expiration) and volatility. (A fifth element, interest rates, also can affect option prices, but for our purposes is unimportant.)
Intrinsic value refers to the amount an option is in-the-money. With [...]

Why Simple Put Options Buying Fail In Volatile Markets
The recent stock market crisis (2008) has a lot of people thinking that big money can be made simply by buying put options but that cannot be farther from the truth. Why does simple put options buying fail in volatile markets?
Option trading, stock options, Options trading, investment
The [...]

The Real Secret of Options Trading
Is Options Trading Invincible? Why has options trading been popularized as the sure win solution to getting rich quick? What is its real secret?
Options trading, investment
Real Secret of Options Trading
Options trading is the trading of stock options and index options instead of the underlying stock or index itself. It has [...]

Is Option Trading Gambling?
Is Option Trading gambling? What differentiates real option trading as an investment and trading activity from a mere gamble for unusually big returns?
Option trading, options trading, stock option trading, stock options trading
We have seen it way too often, haven’t we?
Advertisements that tout making thousands of percents in profits within days and millionaires [...]