Buying Stocks at a Discount by Selling Put Options
Did you know you can by stocks like Apple (AAPL), Google (GOOG) and Microsoft (MSFT) at a discount? You can by selling put options on the stock you want to own.
Did you know you can by stocks like Apple (AAPL), Google (GOOG) and Microsoft (MSFT) at a discount? You can by selling put options on the stock you want to own.
American-style options and European-style options are more similar than you might imagine. But they have one significant difference that is worth understanding.
What you really have at risk in a specific trade is often a function of whether you are long or short, and how quickly you think you can get out of a bad trade. For example, a long option has a fixed risk of the premium or purchase price. However, a short option has theoretically … Continued
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Binary options may improve over time, but right now we don’t recommend them for investors. Using a case study we help you determine if they’re right for you.
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There are more option strategies than option strategists, but at their heart they are all modifications of basically two ideas – buying and/or selling options. The proliferation of options strategies come from the infinite ways that these two concepts can be combined. Some of these combinations can be great ideas but others are just commission … Continued
Option investors have a unique ability to profit in the market no matter which direction a stock’s price moves. A straddle is a great example of this kind of strategy. A straddle is market neutral which means that it will work equally well in bear or bull markets. These trades have an extremely low probability … Continued
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.