There are countless
option trading strategies that allow you to tailor your own trading position by using a combination of stock options. You can have limited returns for limited risk, unlimited returns with limited risk, limited returns with unlimited risk or unlimited returns with unlimited risk.
There are option trading strategies that help you make money regardless of whether the market moves up, down or sideways.
One of the most commonly used strategies of this kind is better known as a spread. Read the rest of this entry
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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 any market, you should always set a pre-determined price that is the maximum you’d be willing to lose in the event of the position moving against you.
Put Options however, allow you to ensure you don’t lose at all as they give you the right to sell your shares at a fixed price anytime throughout the life of the contract.
When you own shares in a blue chip performer, taking out insurance with Puts is a simple process, however if you own shares in a company who is not registered on the options market, you won’t be able to buy put options relating to your shares because they won’t exist.
These stocks are referred to as ‘non-optionable’ stocks. Now that doesn’t mean that you can’t insure non-optionable stocks at all, because there is a strategy that allows you to insure your portfolio as a whole that not too many people know about and it uses Put Options over the Index.
Download your copy of this strategy here Index options as Insurance
To your success
Lorraine James
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How long would it take you to save up the money to buy a house or a car if you had to purchase in all cash?
For most people, it would take a lifetime. This is why we need to use leverage. In very simple terms….leverage is spending a little to buy a lot, or investing a little to return a lot (also known as using Other People’s Money – OPM).
When you understand and master the art of leverage and you put other people’s money to work for YOU at the lowest cost, you will rapidly build your net worth.
There are countless financial instruments in business and personal finance that you can use to help you acquire something of a greater value, whether it be in the form of cash or an asset.
Let us talk in terms of property for a moment as most people relate more easily to real estate. Read the rest of this entry
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There are lots of myths surrounding Stock Options and Option Trading Strategies – they are too complex, too risky, a sure way to lose money and best left to industry professionals. The truth is that Stock Options and the vast array of Option Trading Strategies can play a beneficial and profitable role in every portfolio, especially for those conservative investors.
INSURANCE – Lock in Profits and Minimise Losses
You’ve made some gains on your share portfolio but you’re a little worried about the unknown….what if the market suddenly drops again? Learn to insure your portfolio >>
LEVERAGE – Enter the Market with Minimal Funds
Would you like to profit from rising stock prices without having to buy any shares at all, keeping your capital protected from unexpected price moves? Learn to control shares >>
INCOME – Option Trading Strategies for ANY market direction
Stock Options allow you to profit from stock prices that are moving in any direction. Imagine using just a small amount of money and making a large amount of money in a stock market crash? Learn how to profit from falling share prices >>
PUT YOUR PORTFOLIO TO WORK – squeeze extra income out of shares you own
In the same way you would rent out your investment property for income, you can rent out shares you own to create a regular income. Learn how to rent out shares you own >>
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