Covered Call is an options strategy where an investor holds a long position in an asset or stock and writes (sells) call options on the same asset. This is also known as a “buy-write” strategy if this stock is purchased simultaneously when writing the call. Usually the stock is held in the same brokerage account [...]

In option trading there are two player, the seller and the buyer. If you buy a call, that means you are having long call position. Long call gives the owner the right to buy the underlying asset in the contract, but not an obligation.
For example, Alan and Tom agreed on a call options contract where [...]

Most option strategies are are centered around making the right call on the direction of a stock. This approach relies on the accuracy of guessing the direction of the stock. Thus the chances of profiting are low. By using a combination of Bull and Bear Credit Spread, an Iron Condor position can be created. It [...]

The bear call spread strategy is used when we thinks that the price of underlying asset will go down moderately in near term. If you think the price will go down a lot, I suggest don’t use this strategy. There are better strategy for that condition. It is implemented by selling an in-the-money (ITM) call [...]

The bull put spread strategy is used when we thinks that the price of underlying asset will go up moderately in near term. If you think the price will rise a lot, I suggest don’t use this strategy. There are better strategy for that condition. It is implemented by selling an in-the-money (ITM) put option [...]

In option trading, there are 2 basic option strategy. The long call or long put. Long call is the perfect strategy beginner. A call is an option to buy stock. When buying a call, you are hoping that the underlying/stock will go up. If you know that a securities have a target price higher than [...]

While many traders like to trade forex. Currency trading options if used correctly, can give you two great advantages that can lead you to long term trading success. Let’s take a look at them…
Here we will look at how to buy options correctly and take advantage of limited risk and unlimited gains and how [...]

The Penny Stock Prophet——another hand for you to make wealth. Do you have this time when you come across a chance, you fell deeply troubled, because you have no idea that the chance means an opportunity or a crisis. To make the question more cheer and bright, take the penny stock market for example .Everyone [...]

The great thing about a straddle is that it’s non-directional. This means that you can make money without forecasting market direction. In other words, it doesn’t matter whether the stock price goes up or down in the near future – you can still make money either way – as long as it moves somewhere. The [...]

The use of stock options in a downward moving market is an optimal time for them.  In general, when equities are going downward they do so at a very quick pace   This is exactly the  best time to make use of the inherent properties that equity options have.  The main problem of stock options is [...]