Showing posts with the label options-trading-strategies

Long-Term Options- Introduction

Long-Term Options Introduction Instead, the purpose of this is to highlight the fact that option  premiums in general do not reflect the expected long-term growth rate of the underlying  equities and to explain an investment strategy that can be used to take maximum  advantage of this phenomenon.  As I mentioned before, my own interest in this subject stems from the fact that I could no  longer contribute additional funds to my retirement plan. As a long-term investor in the  market, I had assembled a stock portfolio over many years, and I simply did not wish to  raise cash by selling any of my winners. My few losers and laggards had long since been  disposed of and the proceeds used to buy more shares of my better-performing stocks.  I'm not a short-term, in-and-out investor, but I wanted to keep buying. Options seemed the way to go, but as with stocks, purchasing calls requires money.  What's more, options can only be paid for in cash, so going on margin and

THE OPTIONS COURSE- Processing Your Trade

THE OPTIONS COURSE Processing  Your  Trade Most investors never realize the number of steps required for a trade  to occur and the incredible speed involved. Technology has made  this process almost unnoticeable to the average investor. When  you contact your stock or futures broker, you begin a process that, in  many cases, can be completed in 10 seconds or less, depending on the type  of trade you want to execute. There are various types of orders that are  placed between customers and brokerage firms. The faster technology be comes, the faster a trader’s order gets filled. Let’s take a closer look at  what happens when you place an order. EXCHANGES Stocks, futures, and options are traded on organized exchanges through out the world, 24 hours a day. These exchanges establish rules and proce dures that foster a safe and fair method of determining the price of a  security. They also provide an arena for the trading of securities. Over the  years, the various