Posted on December 14, 2009, 11:33 pm, by admin, under
Option Trading.
In stock trading, traders avoid spreads of any kind because limiting losses can also limit gains. It is a must to trade in a realistic way. If you trade a three-fold gain, which is the strategy that requires only little up-front capital, you strictly limit losses by neutralizing declining time value while opening the possibility [...]
Option is a very popular derivative because its price is cheaper than other derivative such as future. Blue chip stock is a very volatile stock but it is very expensive. However, by buying option of the blue chip stock, we could earn profit just similarly like buying the stock. Investing and trading option seem to [...]
Tags:
Arbitrage Strategy,
Ask Price,
Back Spread,
Bid Price,
Blue Chip Stock,
Breakeven P,
Derivative,
Expiration Date,
In-the-money,
Maximum Loss,
Maximum Profit,
Naked Option,
Option Trading Strategy,
Out-of-the-money,
Strike Price,
Time Value,
Trading Option No Comments |
Read the rest of this entry »