Categories
Option trading is a way for savvy investors to leverage assets and control some of the risks associated with playing the market...
Here are a few things you absolutely need to understand before this Playbook will make as much sense to you as we hope it will...
Don’t worry if some of these meanings aren’t crystal clear at first. That’s normal. Just keep forging ahead, and everything will become more apparent over time...
There are plenty of good option traders who don’t know anything about the following historical facts. But we’ve included this section for those inquisitive...
Some traders mistakenly believe that volatility is based on a directional trend in the stock price. Not so. By definition, volatility is simply the amount the stock price fluctuates...
Before you read the strategies, it’s a good idea to get to know these characters because they’ll affect the price of every option you trade. Keep in mind as you’re getting acquainted...
Like stock options, index option prices rise or fall based on several factors, like the value of the underlying security, strike price, volatility, time until expiration...
Some beginning option traders think that any time you buy or sell options, you eventually have to trade the underlying stock. That’s simply not true...
As opposed to stocks, which have a fixed number of shares outstanding, there’s no minimum or maximum number of option contracts that can exist for any given underlying stock...
Many option traders don’t understand who might be buying or selling the options on the other end of their transaction. Fortunately, after reading this, you won’t be one of them.
