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Although there are many very complicated option trading strategies, a simple option trading strategy can allow you to limit downside risk. Identify stocks with bullish charts that are about to release earnings. Buying call options prior to earnings release allows you to capitalize if the stock … [Read more...] about Growth Stocks: Why Options Trading Isn’t As Risky As You Might Think

Many option traders look into the business of trading commodity futures. However, for some there are hurdles. You cannot trade futures in an IRA. There are other ways to trade commodities. One such option is a commodity ETF. Commodity ETFs work in an IRA and allow people to invest in commodities … [Read more...] about Options Trading: In Search Of A Truly Blended Portfolio | Investor’s Business Daily

An equity index option is simply the right to buy or sell a security in the future, where the security is an equity index. A call option generally goes up as the price of the index goes up where a put option goes up as the price of the index goes down. An index is generally less volatile than an … [Read more...] about Equity vs. Index Options

Options trading can be a difficult task, but if you make a plan, it may be more successful. You should prepare for losses as well as gains. It is a better idea to use the concept of contingent orders for entry, stop, and target option premiums. Buying calls or puts based on how a stock has done in a … [Read more...] about Options Trading: Simple Steps To Follow For Beginners

During times of low market volatility, active traders often use a strategy that relies on intra-day volatility or a news catalyst that increases trading in a particular stock. However, this type of catalyst-driven strategy may not work during times of high market volatility. Here are some strategies … [Read more...] about 8 Strategies For High Volatility Markets

Earning passive income, such as rental money is one ideal way to up one's monies. However, while rentals can accrue in value overtime, and provide a steady stream of money as well as an inherent way to offset maintenance costs, there are downsides. All of them center normally on the human factor. … [Read more...] about Writing covered calls is like collecting monthly rent from your tenant – Option Matters

When considering options, it's useful to keep in mind they cover a lot of ground, proving useful as an income generating device, but also viable for hedging, speculation, as risk and asset protection, for a neutral strategy or a directional one. Calls and puts can be either bearish or bullish. The … [Read more...] about Getting Started with Options

A put option is a type of trade that allows the buyer of the option to force the seller to buy the stock at a preset price. In other words the buyer of the option is buying the right to sell a security at a price. If the price of the security falls below the preset (strike) price then the buyer can … [Read more...] about Put Option Definition & Example

Institutional investors like the options market due to its risk profile and its rewards potential. However, in order to be a successful options trader one needs to have a set plan. A retail trader needs to find an options trading strategy that does not include a lot of trades due to the high level … [Read more...] about These options strategies can make money for retail traders

There are a ton of ways to build wealth. However, it is something that takes a lot of time regardless of who you are. Of course, the stock market is something that has gotten a lot of attention in the building of wealth for many people. In the stock market, there are so many ways to earn money. … [Read more...] about Selling Options – Is It Really One Of The Best Ways To Wealth?