postOption trading’s risky right?

I can lose all my money, I can get a margin call and lose more than I put in the trade, 9/10 options expire worthless. You’ve heard that right? is it true? YES it is. BUT if you only put in $500 on a trade that’s NOT in a margin account, then all you can […]

postRisk and skew in options – ponder this

Options are financial products, the premiums of which reflect the likelihood of that option expiring in-the-money at expiry. While this is at best a mathematical deduction, the sheer magnitude of premium will reveal the risk and reward adopted. Despite the assistance of mathematical models, a trader ought to always understand the basis upon which the […]

postLearn About Options

What is an Option? An option is a standardized contract providing for the right – but not the obligation – to buy or sell an underlying financial instrument. For the Options Hunter this can be an underlying stock, exchange traded fund (ETF), or an index. The contract controls 100 shares, and is good until a […]

postMaking Markets in Options

Many people envy the bookmaker at the race track, but rarely does anyone give them a thought when the favorites keep winning. So it is with the market makers who seemingly never cease to quote a price.   Market making involves considerable funding abilities. Not only will a clearer demand that margins be funded, but […]

post The Value of Open Interest

Particularly outside equity markets having a finite number of shares available, many traders ignore open interest records in their option trading strategies. Primarily this is due to the impossibility of differentiating whether the open interest …is long or short, and so whatever good that may result from this knowledge is immediately squandered. Bearing in mind […]

Copyright © 2020

Powered by WishList Member - Membership Site Software