The study of options can expand your perceptions about the range of possibilities. Most people are familiar with two forms of investment: equity and debt. There is a third method, however, and that third method is far more interesting than the other two. Its attributes are unlike any that most people understand-and these differences can [...]
The majority of casual investors buy and sell stocks. If they are bearish on a stock, some will even short-sell stock. But relatively few investors fully understand and take advantage of trading options.
With stocks, you own a small piece of a company. However, with options, you purchase the right to buy or [...]
From time to time I come across age pensioners whose life is now miserable because they’ve found themselves with what is to them, overwhelming credit card and other debt. On a pension, unless they leave themselves short, they often find that can’t make the repayments.
When talking to me, some of [...]
Back in the summer of 2008 Mervyn King gave the startling news that the average family’s standard of living would ‘stagnate’. This is hardly news as the same thing happened (pretty much) last year and the year before. The huge rise in personal debt is evidence that many people have been financing any increase in [...]
Stock option trading has always given the traders additional work of not just predicting correctly the security’s price. They also must choose the best option for trading strategies. But most stock traders incorrectly figure they can easily make the change from stocks to options.In order to make systems on option trading an on-going basis, the [...]
The Bank of England expects that house prices have seen the worst and that there are enough independent signals to indicate that the economy is in a position to grow into 2010. The temptation to look into a few months of stable-to-mildly-rising house activity and to extrapolate this into a much sought after upswing seems [...]
If you are trading the forex markets then a big concern will be growth forecasts and indications of when the various central bank stimulus packages will end. Growth has returned to the US, mainland Europe and is expected to return soon to the UK.Looking the forex markets, the US Dollar has been out of favour [...]
So it looks like we have avoided a 1930’s style depression however the current forecasts still suggest slow growth and a difficult time ahead. So what should you do in a difficult environment with your own finances?If we were to be honest with ourselves, then we should probably accept that we can improve on at [...]
The key concepts and essential strategies behind the successful use of options Written by Simon Vine, a seasoned trader who has over ten years of experience on Wall Street under his belt, Options is the definitive book on options for traders, investors, and risk professionals. Options provides a step-by-step approach [...]
Trader George Fontanills first began utilizing options in order to go “delta neutral” on his futures positions, which would allow him to “still sleep well at night.” Since he began using options in conjunction with his futures trading, Fontanills believes he has found a way to accelerate his profits while decreasing his risk.
Fontanills began his [...]