Every person reading this article will be living, working and investing in different circumstances, with mind boggling possibilities for variation.For example:
However, very few of us get to start full time investing right away – we just don’t have the capital. So, what to do? You need to develop your own long term Investment Plan [...]
Introducing the Amazing Stock Repair Strategy. This strategy involves buying one at-the-money call option while simultaneously selling two out-of-the-money call options on the same stock, in the same month.
The construction of this trade is critical. First, you must make sure to purchase exactly the equivalent amount of at-the-money call options as shares of stock you [...]
GlobalTec announced today the release of the Wizetrade for Options software, a cutting edge options trading tool that combines access to a wealth of information with the latest navigation capabilities traders need to make efficient, effective trading decisions.
In conjunction with the release of Wizetrade for Options, GlobalTec also released an upgraded version of Option Hunter [...]
The seller of a time spread buys the nearer month option and sells the outer-month option in a one to one ratio.
In order to profit from the sale of the time spread, the seller is looking basically for two things.
First is a decrease in implied volatility. As volatility decreases, the out-month option (which the seller [...]
Derivatives of the Forex trading system are spot trading, futures trading, forwards trading, options trading and swap trades. Many inexperienced Forex traders tend to focus on spot trading. Spot transactions are over-the-counter transactions, handled outside of an organized exchange.
Spot Trading – Spot trading in the Forex trading system is what is termed Forex. A Forex [...]
Like most trades, time spreads have a maximum loss for the buyer. As a buyer, you can only lose what you have spent. If you paid $1.00 for the spread then your maximum potential loss is that $1.00. If you bought the spread for $2.00, then $2.00 is the maximum potential loss.
The buyer of a [...]
When purchasing a time spread, the investor should pay attention to not only the movement of the stock price, but also the movement of volatility. It plays a very large roll in the price of a time spread, which is an excellent way to take advantage of anticipated volatility movements in a hedged fashion.
Option Volatility
Since [...]
Time spreads can be a profitable investment strategy if you understand the concept of time decay. A time spread is designed to take advantage of the fact that an options decay curve is non-linear, that is, an option’s value does not decay evenly over time. As an option gets closer to expiration, its rate of [...]
The seller of a time spread buys the nearer month option and sells the outer-month option in a one-to-one ratio. To profit from the sale of the time spread, the seller must look for two things.
The first is a decrease in implied volatility. As volatility decreases, the out-month option (which the seller is short) loses [...]
We are going to put together an imaginary spread scenario and set it in real life events. Consider that, in October, you begin to hear about IJK stock. It looks interesting, so you use a variety of sources to learn about it. (News, charts, outside analysts, Internet research, etc.) From your investigations, you decide that [...]