This generally means traders can use delta to measure the directional risk of a given option or options strategy. Higher deltas may be suitable for higher-risk, higher-reward strategies that are more speculative, while lower deltas may be ideally suited for lower-risk strategies with high win ...
When markets are declining, selling put options can be a useful tool for the individual investor. However, this is a bullish-to-neutral strategy that involves risk. If the underlying stock moves higher (bullish) or stays about the same (neutral) during the life of the option, then the put...
Another type of spreading strategy involves buying and selling futures contracts of different maturities on the same underlying commodity. It is similar to the cash-and-carry strategy. Besides, we can also do this in different markets (intramarket spread v.s. intermarket spread). cash-and-carry...
14.Explosive Strategy #4 If you want to be more active in stocks but hate the risk, you'll love this. Day trading strategies show you how to trade without the risk normally associated with day trading. Can be setup to be an 'semi-automated' trading system. Very powerful and again anoth...
Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve....
The long put options trading strategy offers an individual the right to sell an underlying stock at the specified price, point A, as listed on the graph. When the investor purchases a put option, he or she is betting that the stock will fall below the st
Putting a leash on stock risk Collar example: Choosing an expiration date and strike prices The bottom line Read More Want to limit your downside risk? Introducing the protective put strategy Selling call and put options: A guide to the risks and rewards Option theta, vega, and implied volatil...
Also, I love the LEAPS strategy! I was on a recent trading class and now working my way through it a second time. Thanks for all you do!" Jason M. "This is pretty awesome stuff - really appreciate all that you are doing for us who are looking to turn a profit on this." John ...
How do investors use put selling? Some investors sell puts to generate income from a stock that they think will rise in the future. This can be an especially effective strategy when most investors think the stock will fall in the near-future, and when market volatility is high — as negati...
Uncovered options are written options where the seller does not own a position in the underlying security. Selling uncovered options is a risky strategy, because the seller may be forced to quickly acquire a position if the buyer exercises their option. Furthermore, the profit potential is capped...