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Option trading is a way for savvy investors to leverage assets and control some of the risksassociated with playing the market...
Here are a few things you absolutely need to understand before this Playbook will make as muchsense to you as we hope it will...
Don’t worry if some of these meanings aren’t crystal clear at first. That’s normal. Just keep forgingahead, and everything will become more apparent over time...
There are plenty of good option traders who don’t knowanything about the following historical facts. But we’veincluded this section for those inquisitive...
Some traders mistakenly believe that volatility is based on a directional trendin the stock price. Not so. By definition, volatility is simply the amount thestock price fluctuates...
Before you read the strategies, it’s a good idea to get to know these characters because they’ll affectthe price of every option you trade.Keep in mind as you’re getting acquainted...
Like stock options, index option prices rise or fall based on several factors, like the value of theunderlying security, strike price, volatility, time until expiration...
Some beginning option traders think that any time youbuy or sell options, you eventually have to trade theunderlying stock. That’s simply not true...
As opposed to stocks, which have a fixed number of shares outstanding, there’s no minimum ormaximum number of option contracts that can exist for any given underlying stock...
Many option traders don’t understand who might be buying or selling the options on the other end oftheir transaction. Fortunately, after reading this, you won’t be one of them.
