This article will show you how to calculate the intrinsic value of your options. At the same time showing you how to communicate with other options traders, when discussing trade with them. 1.)To even begin to calculate the intrinsic value of any option you must know and understand your rights as options owners. A buyer of a call option has the right, but not the obligation … [Read more...]
Trading with Double Diagonal Options
A double diagonal trade is a neutral trade, with a small chance for profit and an equivalent small chance for loss. If you're familiar with options trades, the double diagonal is similar to a Butterfly spread except of that it is diagonal. The most challenging aspect of the trade is finding a good discount broker, since the trade requires four distinct transactions. Define a … [Read more...]
How to Make More Money With Stock Options
Stock options can make you huge amount of money with just a small investment. Just keep in mind few things in mind while trading in it , this wud definately fetch you good returns : The time premium. As the expiration date on a stock option draws nearer the cheaper the option will become. This way you are able to buy even more calls and puts on the stock of your choice. … [Read more...]
How to Have Rules in a Stock, Futures or Forex Trading Plan
Once you start trading the stock or forex markets you need to stick with a trading plan and a set of rules to trade by. You need to stick with your plan and the rewards will follow in profitable trades. To make consistence profitable trades you need to be flexible in your trading plan and adjust it as the need arises. You need to think about what kind of a trader you are and … [Read more...]