I want to talk about what Maximum Safety and Maximum Reward option trading is all about. It’s been the motto of San Jose Options mentoring program for quite some time now. First of all, let me tell you how this concept came about.
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Focusing on Safety While Trading Options
May 8, 2010 By Donald Scott
Filed Under: Stock Market Tagged With: finance, investing, option trading, options, Stock Market
Complexities of Stocks and Options
April 23, 2010 By Johnny M Junior
So let’s talk about the differences between investing with stocks and options. First we’ll tackle the less complex investing vehicle, we all know as stocks. To start with, you should know that stocks are directional trading vehicles. If we are long the stock, then we make money when the prices of the asset rises, and we lose capital as the underlying asset’s price decreases. Also, we can sell a stock short in which the profit comes when the stock falls. Direction is key when investing with stocks. We need not worry about time or market volatility.
Filed Under: Stock Market Tagged With: Business, finance, investing, option trading, options, Stock Market
Constructing Low-Risk Option Trades
April 20, 2010 By Donald Scott
I’ve been playing the trading options game for about a decade now, and I’ve made a lot of friends along the way. I’ve met numerous option traders, probably somewhere in the hundreds, all working along side me on this long time endeavor to achieve success on the stock market and the truth is, only a handful were making money. It makes me wonder why there are so many people out there playing this game and investing in the stock market when most of them only lose their capital.
Filed Under: Stock Market Tagged With: Business, investing, money, option trading, options, retirement, Stock Market
Income Options Spreads
April 13, 2010 By Johnny M Junior
The “Iron Condor” is a negative Vega option spread, meaning that it benefits when the IV on the underlying traded is going down. This usually happens if the underlying price is rising. Right now the market is somewhat bullish. With a negative Vega spread this could be the right time to use the “Iron Condor” strategy, but make sure that the IV still has room to drop. If IV hits support, then watch out because it might just rise on you and this will really hurt the Condor.
Filed Under: Stock Market Tagged With: finance, investing, iron condor, money, option trading, options, Stock Market
Leverage Your Investments with Options
April 10, 2010 By Johnny M Junior
Do you want to put some leverage into your investments? In order to do this you will need to learn the basics of option trading. When investing with option trades, you will need to carefully look at your choices. You should consider “puts” if you think that the index will go down in a short period of time, and if the index or stock is on its way up quickly, then you should buy “calls”, thus the 2 option trades being “puts and calls.”
Filed Under: Stock Market Tagged With: Business, finance, investing, options, Stock Market
Know These Short Selling Shocking Facts
March 8, 2010 By Ahmad Hassam
Short selling is one of the favorite day trading strategies employed by many day traders. Many companies hate short sellers as they believe that short sellers were responsible in the fall of their stock prices. Nothing can be far from the truth. Short selling is just like anyother market mechanism that provides liquidity and better price discovery. Short selling can never destroy a company if its’ fundamentals are strong. Many stock brokers now let you short stocks with just the click of a mouse. When you sell stocks from your online brokerage account, the message asks you whether you are selling your own shares or short selling. You just need to click once on short selling and the rest is taken care of by the broker. These shares are a loan to you by the broker that you will have to return at a later date!
Filed Under: News Tagged With: Business, currency trading, day trading, etfs, finance, forex, investing, mutual funds, options, real estate, retirement, Stock Trading, stocks, Trading, wealth building
Harami And The Harami Cross Candlestick Patterns Can Make You Rich!
March 1, 2010 By Ahmad Hassam
Harami is a two stick candlestick pattern or what you may call a two day candlestick pattern observed on the daily charts. The first day candle is longer than the second day candle. Harami candlestick pattern can be bullish as well as bearish.
Filed Under: Stock Market Tagged With: Banking, day trading, etfs, forex, investing, money, mutual funds, options, personal finance, retirement, small business, Stock Market, stocks, Trading
Back Testing Your Trading System-Know These Shocking Limitations
February 27, 2010 By Ahmad Hassam
Your trading system needs thorough testing before you decide to trade live with it. A trading system might comprise of a set of indicators. You need to know how well your trading system and its set of indicators work in a particular market.
Filed Under: Stock Trading Tagged With: credit, currency trading, day trading, debt, forex, futures, home business, money, mutual funds, options, real estate, retirement, Stock Market, Stock Trading, stocks, Trading, wealth building
Less Adjustments with Option Strategies
February 18, 2010 By Johnny M Junior
When the volatility is going down and the stock markets are moving in an upward trend, you could say that this is the right time to use the condor strategy. The Condor is a negative Vega option spread, meaning that you can make more money by using the Condor when the volatility is moving downward.
Filed Under: Stock Market Tagged With: finance, investing, iron condor, money, option trading, options, Stock Market
Trading Options with Volatility
February 15, 2010 By Donald Scott
While the volatility is declining and the market is going up, one could believe that this would be the right time to trade the Iron Condor. The Iron Condor benefits by a drop in the volatility because the Iron Condor is a negative Vega option spread. If you are not sure what negative Vega is, then you’d benefit by visiting www.sjoptions.com and watching their free videos on the Option Greeks.
Filed Under: Stock Market Tagged With: finance, investing, iron condor, money, option trading, options, Stock Market
