Category: Option strategy

September 15, 2008

Financial turmoil around the world

Filed under: Option strategy - 15 Sep 2008

The global market is having serious problem. Watch your investment carefully. There are many bad news in the US market. Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan …

Subprime Mortgages

Filed under: Option strategy - 15 Sep 2008

A subprime loan typically has a higher interest rate than other loans because the people who need it usually have a poor credit history or very low credit score.

These high interest loans do make people pay a lot more for …

Lehman Prepare Bankruptcy as Buyers Withdraw

Filed under: Option strategy - 15 Sep 2008

Lehman Brothers Holdings Inc. prepared to file for bankruptcy after Barclays Plc and Bank of America Corp. abandoned talks to buy the U.S. securities firm .

Barclays contending it couldn’t obtain guarantees from the government or other Wall Street firms to …

March 10, 2008

Canslim

Filed under: Option strategy - 10 Mar 2008

CAN SLIM is a growth stock investment strategy developed by William O’Neill, the co-founder of “Investor Business Dailly” / IBD. He described his strategy in the book How To Make Money In Stocks: A Winning System in Good …

February 23, 2008

Income strategy - option Spread

Filed under: Income strategy - 23 Feb 2008

Using an option spread involves combining two different option. There are various kind of spread:
-Vertical spread, buy and sell option with different strike price, same expiration date
-Horizontal spread, buy and sell option with same strike price, but different expiration date
-Diagonal …

February 22, 2008

Income strategy - Covered Call

Filed under: Income strategy - 22 Feb 2008

The Covered Call is the most basic of income strategies, but it is very effective and can also be used by experts. From the name we knew that it use the call option which is protected by something. This strategy …

Basic option strategy

Filed under: Basic strategy - 22 Feb 2008

Long call is the basic of option strategy. For beginner, it is the perfect strategy for their first option. A call is an option to buy stock. When buying call option, you are hoping that the underlying will go up. …

February 11, 2008

Volatility option strategy

Filed under: Volatility strategy - 11 Feb 2008

Volatility strategy is a strategy which benefit from the price volatility of underlying stock. You can profit whether the stock moves up or down. The important thing is it moves explosively in one direction. Announcement or news event can cause …

February 9, 2008

Income strategy introduction

Filed under: Income strategy, Option strategy - 09 Feb 2008

With income strategy we can generate profit on regular basis, buy combining buy or sell. This strategy is done by selling option either by selling calls or selling puts, and buying another option to protect the other option. This strategy …

February 7, 2008

Understanding the “Greeks”

Filed under: Option strategy - 07 Feb 2008

To understand the movement of option price, we need to understand the “Greeks”. Option price movement is affected by its underlying (e.g. stock) price, time decay, volatility, and interest rate.
Delta 
The speed of option price moving relative to the underlying stock …

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