The Black-Scholes option pricing model is a highly regarded theoretical option pricing formula in significant use today. Traders should be familiar with how it works.
If you don’t know by now, there are two types of options available to you. There are put options which give you the right to… Read More »Can You Make 500% Return in Options in One Day?
Volatile stocks can be most profitable or financially devastating. An investor that obeys this rule will limit his risk while raising his profits. What is it?
Investors can use options to insure against a stock price drop, speculate on a stock’s future price direction, or generate cash from a long-term investment.
How does an option spread trade make a profit up-front, and yield its maximum profit if the underlying stock doesn’t move at all? An iron condor does both.
While buying and selling stock options is a very large risk, the returns that it can produce are equally large.
Learning about options trading is a great way to diversify investments. Options offer an entirely different way to approach risk.
Investors can use equity options to take a speculative position or to offset the risk of another investment.