Using LEAPS to Invest In China
Using long term options like LEAPS to invest in emerging market economies like China or Brazil can help control risk while still leaving plenty of upside.
Using long term options like LEAPS to invest in emerging market economies like China or Brazil can help control risk while still leaving plenty of upside.
Protective puts combined with covered calls are a strategy called a collar that can be used by traders who need to limit their risk.
Calendar spreads are a great modification of the diagonal option spread strategy. The calendar spread is useful when you are more uncertain about the direction of the market and want to increase the effectiveness of the hedge during periods of market volatility.
It’s possible to control your risk and improve your returns by selling a call option against a stock or ETF you already own and collect the option premium. We learn how to trade a covered call by walking you through an example and show you some of the common risks associated with this strategy.
We explain call options using a chart of Oracle as an example. Options traders will buy calls when they think a stock or index will move up. We discuss the advantages and risks associated with buying call options.
Time value erosion is a big problem for option traders. In some cases it makes sense to add a credit spread to the position to limit that disadvantage.
LEAPS options can be used to buy a value stock with more leverage and therefore less money invested. It can be a good way to create diversification.
Call and put options don’t move independent of each other. In many ways, they are two sides of the same coin.
Sometimes traders evaluating a straddle feel like the barriers are so far away, that there is just no way that this trade could become profitable in the timeframe they have given it. It’s a fair objection and if you feel this way, or can’t find stocks or indexes that are likely to move outside the … Continued
Options investors have a unique ability to profit in the market no matter which direction it moves. A straddle is one of strategy for making money outside a bull market. These trades are market neutral, have an extremely low probability of maximum loss and pay big returns when the market moves a lot. [VIDEO] Option … Continued