Learn All About Stock Option Trading and Grow Your Wealth
Stock option trading is by far the most popular of the suite of underlying financial instruments from which derivatives are traded. You can also trade options on commodities and foreign exchange rates, even options on futures … but company stocks listed on the major world exchanges are usually the first port of call for aspiring options traders.
When we say “stocks” we include stock indexes and exchange traded funds such as the SPY (based on the S&P500) or the QQQQ (mimics the Nasdaq Top 100) in the mix. Search the internet for options trading courses and you’ll find the vast majority are focussed on the stock market.
In this section of our website we plan to explore option trading as it particularly relates to the stock market. Many of the option trading strategies outlined in other parts of the site are clearly about stock option trading, but the principles in the main can be applied to commoditity futures options and forex options trading as well. But here, you will find education and commentaries which may include examples of specific stocks and how they can be traded.
So let’s get started …
Stock Option Trading – Table of Contents
1. Stock Market Option Trading
Stock market option trading is not the only securities market where options are traded but it is by far the most popular. Learning how to trade well is the most profitable skill you can ever master.
2. Using Options to Buy Stocks
Did you know that if you’re thinking of owning shares, you could be using options to buy stocks so much cheaper than if you just went to your broker and simply bought them at market price?
3. Bottom Fishing Stocks using options
Bottom fishing stocks is a term that describes a stock purchasing strategy which focuses on shares in a company whose stock has taken a large and decisive price dive accompanied by notably increased volume. Using options, you can buy these stocks at an even further discount.
4. Debit Spread Example
The following debit spread example shows how that, even when the price of the underlying financial instrument goes against you, you can still make a nice profit on your investment.
5. Inside Days Trading
The inside day trading strategy is a powerful day trading strategy that has even been promoted by some as ‘the one trading secret that can make you rich’. More details here …
6. Dow Jones 30 Stocks – Option Trading
Dow Jones stocks option trading is about trading options on each of the individual stocks that make up the famous Dow Jones Industrial Average, not about trading the DJI index itself. You get the advantages of high liquidity, making it easier to construct more advanced positions.
7. How Do Stock Options Work?
How do stock options work, you ask? The answer to that is somewhat involved but if you stay with us for a moment, you’ll find it most interesting. Let’s break it down.
8. Stock Option Day Trading
Stock option day trading is about opening and closing options positions within the same trading session on any given day. Successful stock option day trading means following a proven system.
9. Stock Option Trading Information
Here’s some stock option trading information that will change the way you see options forever. Trade by the numbers and trade with confidence!
10. How to Trade Stock Options
Learning how to trade stock options could be one of the best decisions of your life. Or it could be a disaster. How that turns out for you will depend on a number of factors.
11. What is a Stock Option
What is a stock option trading system that consistently makes a solid monthly return? One which uses low risk, low maintenance option spreads and the ability to adjust your positions when necessary.
12. Stock Option Trading Strategy
The best stock option trading strategy is one with a high degree of certainty for consistent profits. To achieve this, be prepared to accept a profit level that is less than the maximum potential.
13. Online Stock Option Trading
For online stock option trading enthusiasts, the internet has changed the way we do business. It has allowed thousands to analyze and trade the markets from the comfort of their homes.
14. Stock Option Pricing
Stock option pricing is one of those subjects that any aspiring trader should clearly understand before venturing into the world of options trading.
15. Selling Stock Options
Those who make a living selling stock options believe that it is probably the closest an investor will ever get to the “holy grail” of investments. Why do they believe this?
16. Stock Option Trading Course
The best type of stock option trading course will show you how to take advantage of the one certainty that comes with options – expiration and time decay.
17. Daily Stock Market Options Trading
Daily Stock Market Options Trading, when understood and applied with discipline, is without doubt, one of the most secure and profitable enterprises anyone can embark on.
18. US Stock Options
The US stock options market, together with the advanced option strategies it allows, provides the ideal match that can give educated traders the right to potentially choose their own rewards.
19. Stock Options Implied Volatility
Stock options implied volatility is one of those terms you so often hear, but understanding its significance can be critical to a successful trading outcome.
20. Earnings Report Definition
So what is an earnings report and how can they help us to trade options profitably?