Showing posts with the label option-trading-for-dummies


THE OPTIONS COURSE CONCLUSION Options, the most flexible financial instrument that exists today, provide  unique investment opportunities to knowledgeable traders on a regular  basis. However, the entire options arena can be a very complex and con fusing place in which to venture, especially for the novice trader. The pri mary reason for this complexity is the fact that options trading is a  multidimensional process; and each dimension needs to be understood in  order to trade successfully. Prior to initiating an options position, there are three main issues to  consider: direction, duration, and magnitude. Direction refers to whether  the underlying security will move up, down, or sideways. Duration refers to  how long it will take for the anticipated move to take place. Magnitude  refers to how big the subsequent move will be. In order to make a profit, the  options trader must be correct in all three of these categories. This is the  primary reason that many people