Archive for 'Options Trading'
Derivatives – Play it Safe
Posted on 18. Dec, 2009 by Global.
Derivatives are one of the most powerful tools you can add to your trading toolbox, however you need to have a thorough understanding of strategy and risk before you dive into the derivatives market. In a nutshell – a derivative is generally a contract rather than an asset. This contract directly relates to the asset, [...]
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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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Day Trading: Is It Really For You?
Posted on 28. Sep, 2009 by Global.
Something I found a few students in our last weekend trading course were focussed on was that of Day Trading, perhaps without the realisation of what exactly it entails. Before deciding which type of trader you would like to become, you need to realise that the quality of your lifestyle very much depends on your [...]
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It Ain’t Fundamentally So
Posted on 31. Aug, 2009 by Global.
I’ve noticed particular brokers and fund managers lately talking buy recommendations that seem to be moving away from the low to mid cap stocks and back into the big blue chip companies. When you think about it, it’s really not surprising that although our global economies are reportedly improving, there are still signs of uncertainty [...]
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Bull Market Breather
Posted on 21. Aug, 2009 by Global.
I have had quite a busy week talking with the lovely people of Port Macquarie about our 2 day Options Trading course in September, and I have been asked the same question several times, albeit in a slightly different wording each time.
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What are Stock Options? – Understanding Derivatives
Posted on 17. Aug, 2009 by Global.
Traders and investors who consistently make money in the stock market don’t just rely on rising markets, they have strategies that allow them to benefit from sideways or down trending markets too. This means they are active in all market conditions and don’t sit it out when conditions change or become volatile the way [...]
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Stock Market Crash: Where does all the Money Go?
Posted on 10. Aug, 2009 by Global.
We’ve experienced a few of them over the last year and a lot of investors and traders are still hanging around not participating, remaining undecided until the Bull really shows it’s horns in full swing. Have you ever wondered on those days where billions of dollars are wiped off the market almost suddenly, what actually [...]
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