Importance of Education to the Investor How many of you out there think that the market is performing well? How many think the market is performing poorly? And how many feel the markets performance is neutral? Actually none of these answers is correct. You see, the market does not perform, you do. You perform! Sometimes you perform well, and other times you do not perform so well. The market doesn't perform, it moves. It moves up, it moKeywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Investor's responsibility when he is alone in the market. In today's market environment, the best remedy for this situation is for you to get more involved in your own investing decisions. The problem is that most individual investors do not have the knowledge, resources, or time to spend doing their own research, stock selection, execution, and position management.Keywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Options Basics What is an Option? An option is a traded security that is a derivative product. By derivative product we mean that it is a product whose value is based upon or derived from the price of something else. Since we are talking about stocks, a stock option is based upon, among other things, the price of the underlying stock.Keywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Two kinds of Options are Calls and Puts A call option gives the buyer the right but not the obligation to buy a specific security at a specific price by a specific date. It's a way of 'locking in' the purchase price of the stock for a period of time. A put option gives the buyer the right but not the obligation to sell a specific security at a specific price by a specific date. It's a way of 'locking in' the sales price of a stock for aKeywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Difference between In-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM). An option can be described by its strike price's proximity to the stock's price. An option can either be in-the-money (ITM), out-of-the-money (OTM), or at-the-money (ATM). An at-the-money option is described as an option whose exercise or strike price is approximately equal to the present price of the underlying stock.Keywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Premium and Parity Premium is the total amount of money (price) you pay for an option. So, if the Microsoft (MSFT) May 65 calls cost you $1.50 then the $1.50 is the amount of the premium of the option. The total price of an option (premium) consists of two components. Those two components are intrinsic value and extrinsic value. Parity - When we discuss parity in terms of options, we say that parity is the amount byKeywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made The Importance Of Volatility Volatility is defined as the degree to which the price of a stock or other underlying instrument tends to move or fluctuate over a period of time. Implied Volatility is a value derived from the option's price. It indicated what the market's perception of the volatility of the stock or underlying will be during the future life of the contract.Keywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Put Option A put option is a contract between two parties (a buyer and a seller) whereby the buyer acquires the right but not the obligation to sell a specified stock or other underlying instrument at a specified price by a specified date. The seller of a put option assumes the obligation of taking delivery of the stock or other underlying instrument from the buyer should the buyer wish to exercise his optioKeywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Strategies for Options Trading Webster's Dictionary defines the term strategy as ' 1 a) the science of planning and directing larger scale military operations, specifically (as distinguished from TACTICS) of maneuvering forces into the most advantageous position prior to actual engagement with the enemy b) a plan or action based on this. 2 a) skill in managing or planning, especially by using stratagems b) a stratagem or artfulKeywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made The “Stagnant” Scenario vs. The “Down” Scenario When we apply the covered call strategy to the stagnant stock scenario, we take a negative return scenario and turn it into a positive scenario. Remember, when we sell an option, we receive a premium for doing so. When the stock does not move during the option's life, the extrinsic value of the option goes to zero. The amount of money paid for the option goes to the seller. We'll take a look at hoKeywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made The 'Up' Scenario In the 'up' scenario, the maximum gain that can be attained is the stock finishing at $10.00 or higher. At $10.00, you would profit from the full value of the extrinsic value of the option which is $.50 and you would also have $.50 of capital appreciation from the stock for a total of $1.00. This represents a 10.52% one-month return or an annualized return of 126.32%.Keywords:
John Roney, online option trading, options trading school, option trading school, online stock option trading, online trading options, traders and investors, home study course, options home study, stock option trading, trading options made Internet Marketing Your Home-Based Business This is an article outlining two of the most basic steps to getting started marketing a business online, plus the importance of doing so.Keywords:
John Roney, Home based business, home business, Christian home business, network marketing, multilevel marketing, multi level marketing, recruiting, travel business, home based travel business
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