Options trading is when you buy and sell contracts that give you the right to purchase or sell a block of an underlying asset at a set price during a specific time frame. Options are not assets they are bets on a potential asset moving in price. An option chain gives you prices on different […]
What Is Options Trading? Read More »
A zero sum game is a situation where one person’s gain is equal to another person’s loss, so the total money inside the game for the players and participants is always a net change of zero as a whole unless money is removed or added to the game. The financial contract markets for futures and
What Is A Zero Sum Game? Read More »
A call option is a contract that is created by an option trader selling to open a financial contract that gives the buyer of the call option the right to buy a stock or commodity at a set price before a specific expiration date. The asset that the option price value is written on is
What Is A Call Option? Read More »
This is a Guest Post by Chuck McCleary @optionsappetite. When the Volatility Index (or VIX) gets above 20, most traders take their foot off the gas due to heightened uncertainty in the markets. But to options traders that sell premium, higher volatility equals more opportunity. Let me explain why. Historically, implied volatility (IV) is always greater
3 Best Direction Neutral Options Trading Strategies Read More »
This is a Guest Post by @AKFallible In this scene of Billions Season 4, we’ll talk about Taylor’s Equation and what it all means. Check Out Our Billions Playlist: https://www.youtube.com/watch?v=U034k41f2nE&list=PLZWbVSavQFXTEwTLFrq4hwGiKJmcWHIQ3&index=2 Learn More About The Nasdaq All Stars Systems here: https://youtu.be/-_xLL1b3rdY Learn How To Trade Options Here: https://www.youtube.com/watch?v=divR1hMDslc&list=PLZWbVSavQFXRg5RZl2YS8wMIkjjB8HOsR ***All content, opinions, and commentary by Fallible is
The Black Scholes Option Pricing Model Explained Read More »
This is a Video Guest Post by @AkFallible. Here’s the full article: https://macro-ops.com/the-misconceptions-and-pitfalls-of-options-trading/ Learn the REAL way to trade options with our free guide: https://macro-ops.com/foptions/ Why are all those spread structures that we mentioned in the last video mostly worthless to retail traders? Because all they do is run up commissions and add next to
The Dangers of Option Play Commisions Read More »
This is a Guest Post by Beth Gaston Moon of InvestorPlace. When options trading began in 1973, a limited number of securities traded on the market. HOW TO TRADE OPTIONS: – What Are Options? – What Are Options Contracts? – Price of Options – How to Read Options Symbols – How to Price Options – How
How to Read Option Contract Symbols Read More »
This is a guest post by AK of Fallible. False confidence in anything is dangerous. This is especially true in options trading. It’s a silent killer that leaves its victims demoralized and broke, slamming drinks at the local bar, wondering where it all went wrong… So how does false confidence infect an option trader’s
The Biggest Trading Mistakes With Options Read More »
This is a guest post by AK of Fallible. The financial media will tell you that options are more risky than plain vanilla stocks. This is true if we define risk as the volatility of returns. But practitioners will tell you that volatility is a crappy measure of risk. Other market participants will tell you
Which Are Riskier? Options or Stocks Read More »
This is a Guest Post by AK Fallible. Learn the REAL way to trade options with our free guide: https://macro-ops.com/foptions/ ***I screwed up the Apple example a bit because I guess I can’t read. The option expiring $2 “in the money” will give you the 10x return, not the break even. Either way, the probability
How To Trade With Options and Position Sizing Explained Read More »