Archive for 'Option Trading Strategies'
Hedging with Index Options
Posted on 07. Feb, 2010 by Global.
While the typical share investor might regard a stop loss order as the best way to protect their share portfolio against the downside, the informed investor knows the most effective way to protect their capital is by hedging, using Put Options. That’s certainly not to say “don’t use a stop loss”, in fact when trading [...]
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FREE download – Limited Access
Posted on 03. Feb, 2010 by Global.
Wow, I can’t believe the fantastic responses we’ve received from the survey I sent everyone to last week. I really appreciate your feedback because it helps us to understand what you need help with. The good news is that a lot of people have started to educate themselves on investing and trading and most of [...]
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Option Trading Strategies: The Long Put
Posted on 19. Nov, 2009 by Global.
Option Trading Strategies such as the Long Put (buying Put Options) involve an investor buying a Put Option in order to profit from a downward move in the underlying share price. Therefore, their view on the underlying stock is Bearish. Before executing any bearish Option Trading Strategy, it is important you thoroughly understand the fundamentals about buying and [...]
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Options Trading Strategies: Renting Shares for Profit
Posted on 16. Nov, 2009 by Global.
Nearly all of us understand the concept of becoming a Landlord don’t we? You buy a property (hopefully in a growth area) and you draw up a lease agreement with someone who is prepared to rent the property from you for a premium, or rental fee each month. As a property investor, your [...]
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Option Trading Strategies: The Long Call
Posted on 11. Nov, 2009 by Global.
Option Trading Strategies such as the Long Call (Buying Call Options) involves an investor purchasing a Call Option, effectively giving them control over the underlying stock without having to outlay the money to buy shares. How Does a Call Option Work? Call Options are contracts over shares that give you the right, but not the obligation to buy [...]
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Option Trading Strategies: Protective Put
Posted on 11. Nov, 2009 by Global.
When an investor purchases a put option and they own shares in the underlying stock, they are said to be using a protective put. How Does a Protective Put Work? When you purchase a Put Option over shares you own, you are effectively insuring your shares against loss because you have the right to sell [...]
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