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Put/Call Ratio: Meaning and Usage
The put/call ratio is a popular sentiment indicator based upon the trading volumes of put options compared to call options. The ratio attempts to gauge the prevailing level of bullishness or bearishness in the market. Each day the CBOE calculates...
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 options...
Putting stops on options
One thing that I think is critical for any option trader whether they are an option seller or a buyer is a stop. Just like stock traders everyone who trades options should have a stop that tells them when to get out of a trade. There are a couple...
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 puts...
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 that the...
What are Market Corrections and Volatilty ?
Understanding Market Corrections and Volatilty What is correction? A stock market correction is a relatively short lived (a few weeks to a few months) and dramatic price decline that interrupts an upward trend in the stock market. A correction is often...
What Makes a Potential Investment Good?
What Makes a Potential Investment Good? What makes a potential investment good is a question that doesn’t get asked enough by most investors. If you asked your average investor that question you would get one of two answers 1-One that goes up and 2-One...
Ten golden rules for Traders
Ten golden rules for Traders 1. Forget the news, remember the chart. You’re not smart enough to know how news will affect the price. The chart already knows the news is coming. 2. Buy the first pullback from a new high. Sell the first pullback from...
What Is A Trailing Stop Loss?
What Is A Trailing Stop Loss? A trailing stop loss is a useful tool for those doing momentum based stock trading. It may be easiest to explain with an example: On Monday John purchases 100 shares of stock at 100 per share (that’s 10,000.) He then immediately...
How Do Puts & Calls Work in the Stock Market?
Many people are skeptical about the work ao put and calls system in the stock market .Still there would be amny people who are trading fromm ages and still not clear about the concept of put and call option. Prices and Dates The price at which an option...
How to Buy a Call Option for Profit
Options are a best and the powerful way to increase the value of your portfolio while increasing your income and monthly cash flow. If used correctly with right decisions , trading options can make you enormous profits. Contradictory to it , if you...
How to Become Better at Trading Stock Options
Stock options have the potential to make money much faster than just owning a stock. Here are some ways to become better at trading stock options. Start out small. Before you start buying and selling stock options with huge investment , it is a good idea...
How to Do Options Trading Online
The most accessible type of trading there is, stock option trading . It basically allows you to trade on a stocks potential movement. In a world that is as fast moving as options trading you will need two things, research and a trading platform. Here...
How to Day Trade Options
Day trading options can proof to be an affective investment strategy as long as you follow the correct rules and plan each trade out in advance. This article will provide a step by step example of a method for day trading options. The strategy. There...
What Are the Benefits of Options & Futures?
Derivatives, which derive their value from the performance of other assets, are often negatively associated with risk and lack of disclosure by the general public. These ideas arise from high-profile failures. Contrary to this prevailing sentiment, there...
