How to options,share prices,forex factory app - PDF Review

07.09.2015 admin
The following is an excerpt from the eBook, Options Trading 101, authored by MarketClub Options lead trainer, Trader Travis. An option chain is essentially a list of all the stock option contracts available for a given security (stock). There are only two types of stock option contracts, puts and calls, so an option chain is essentially a list of all the puts and calls available for the particular stock you're looking at. Part of the confusion in understanding option chains is that every option chain looks different. If you go to Yahoo, MSN, CBOE, or your brokerage account and pull up an option quote, you will notice that the layout of each of their option chains is completely different. However, they all essentially have the same information displayed, but look completely different. As you can see from the picture, there are several different expiration months listed horizontally across the top of the option chain (Aug 09, Sep 09, Dec 09, etc.). Each stock option chain will list out all the call options and all the put options for the particular stock.
The third column lists the last price at which an option was traded (was opened or closed).
The Bid price is the price that a buyer is willing to pay for that particular stock option.
The Ask price is the price that a seller is willing to accept for that particular stock option (this is the price the seller is "asking" for). As more and more traders have learned of the multitude of potential benefits available to them via the use of options, the trading volume in options has proliferated over the years. Investors or traders will buy a put option because they think the price of a stock will go down, and they would like to profit from the fall. A trader needs to look out for the option multiples and option expiration dates and types when using Futures Options. The covered call trade strategy (aka buy-write) involves buying the stock and selling one call option against every one hundred shares that is owned.
There are many aspects to trading options and it can be extremely confusing for someone starting out.


For our example we are looking at all the call and put options that expire the 3rd week of December 2009. Depending on which option chain you are looking at, the call options may be listed above the put options or sometimes the calls and puts are listed side-by-side. But now, with MarketClub Options, members can learn how to accelerate their profits with the power of leverage and a strategy built for long-term success.
With calls, the lower strike prices have the highest option prices, with option prices declining at each higher strike level. Protected Portfolios, and day traders with ADHD who trade binary options and profit or lose from 60 second markets movements.
There are binary option brokers that offer short term options on many of the large stock market indexes.
The call option also gives the seller the obligation to sell the buyer the stock for the predetermined price. Although they trade like a stock, to actually buy an option, a trader to needs to specify more information.
You can also see Trader Travis' 10 Minute Options Trading Strategy where he shows you how to find, execute and manage profitable options trades within minutes.
The symbol identifies 4 things: which stock this option belongs to, what the strike price is, what month it expires in, and if it is a call or a put option.
The higher the open interests, the easier it will be to buy or sell the stock option because it means a greater deal of traders are trading this stock option.
Trader Travis will show you step-by-step how to find, execute and manage winning options trades.
Some traders use options to speculate on price direction, others to hedge existing or anticipated positions and others still to craft unique positions that offer benefits not routinely available to the trader of just the underlying stock, index or futures contract (for example, the ability to make money if the underlying security remains relatively unchanged). This is because each successive strike price is either less in-the-money or more out-of-the-money, thus each contains less "intrinsic value" than the option at the next lower strike price. The way to protect a portfolio from a stock market crash or correction is with a put option.
So all the put option does for the investor is protect in the event that the markets fall 13% in 2014.


Although binaries are different than weekly options or monthly options they are very easy to understand.
If we sell the $26 call and on options expiration day Microsoft stock is still below $26 a share we get to keep the $50 from selling the call and the stock stays in our account.
Sometimes people will sell the call that expires in this month and then the stock has an earnings announcement and the volatility of the option drops giving them a profit on the far out of the money call that they sold.
Remember, a put option is the right to sell the stock at the strike price, and a call option is the right to buy the stock at the strike price! If your friend told you that he turned $1000 into $10,000 and that is the reason you want to trade options, then you are better off in Las Vegas. The good thing about a covered call is that it can be done every month, and with weekly options it can be done every week!
If the stock is still at $38.50 a share, then the option we sold will expire worthless and we will have made $100.
Regardless of their objective, one of the keys to success is to pick the right option, or combination of options, needed to create a position with the desired risk-to-reward tradeoff(s). This means that if the SPY falls below $160 by December 2014, the owner of the put option can sell shares of $SPY for $160, even though the price may be at $140. There are options listed on the S&P futures and they are similar to those traded on the SPY ETF.
As such, today's savvy option trader is typically looking at a more sophisticated set of data when it comes to options than the traders of decades past. It is imperative for an option trader to consider the difference between the bid and ask price when considering any option trade. Buy to close, is the order that is placed when the option was sold short and now the trader wants to buy it back. Select the expiry month that you wish to trade the option in, and then click on the highlighted symbol that corresponds with the strike price you wish to trade at.



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