Posts Tagged futures and options
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The Long Gut – Option Trading
The Long Gut Spread is a volatile options trading strategy designed to profit when the underlying stock moves strongly upwards or downwards. The Long Gut Spread is a cousin of the Long Straddle and the Long Strangle with the only difference being tha
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Long Straddle Option Trading Strategy
A long straddle involves going long, i.e., purchasing, both a call option and a put option on some stock, interest rate, index or other underlying. The two options are bought at the same strike price and expire at the same time. The owner of a long s
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Put BackSpread Option- Explained
Put back spreads are great strategies when you are expecting big downward moves in already volatile stocks. The trade itself involves selling a put at a higher strike and buying a greater number of puts at a lower strike price. The put backspread is
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Long Put Option- Explained
A put option (usually just called a "put") is a financial contract between two parties, the writer (seller) and the buyer of the option. The buyer acquires a short position with the right, but not the obligation, to sell the underlying instrument at
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Short Call -Option Trading
You short a call when you write (sell) a call that you don't currently own. There are two basic types of short calls covered and uncovered (naked). The investor writing Call options should firmly believe that XYZ is not going up! XYZ doesn't have to
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Protective Put Option – Option Trading
A put option purchased for an underlying security that is already owned by the holder of the option. A protective put defends against a drop in the share price of the underlying security. A protective put strategy is usually employed when the option
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Long Call Option : Option Trading
The long call option strategy is the most basic option trading strategy whereby the options trader buy call options with the belief that the price of the underlying security will rise significantly beyond the strike price before the option expirati
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Dangers of naked puts
What a naked put option is? A put option gives the buyer the right to sell a given stock at a given price on or before a given date. It also gives the seller the obligation to buy the stock at the given price on or before the given date.Naked pu
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Why Stock, Futures and Forex Markets Correct from Bull to Bear
When does the market goes up? Markets moves up because market participants believe in the fundamentals behind the market. At a certain point it is seen that the fundamentals change and the market corrects, however the reason fundamentals change is
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Use of options to replace stocks or futures for massive profits
Options trading strategies are being used widely by traders and investors. This article describe how to use options to replace stocks or futures. It also describe options trading strategies that uses stock options and futures options. Option trading
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What are the main Asset classes in India?
What are the main Asset classes in India? What is meant by Asset Allocation? Asset allocation is about diversifying your investments across different asset classes so that you can optimise the risk return balance of your portfolio. It ensures t
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