Trading

What are Investment Objectives and why do I have to choose one?

Industry regulations require brokerage firms to know their clients. Part of this process involves gathering information about your trading experience, your financial background (including net worth and annual income), and your investment objectives. An investment objective is your overall outlook on trading for your account. Ally needs an accurate picture of your goals because we […]

Options

Options Expiration

If you have positions that are in the money, it's crucial that you monitor your account and communicate with Ally on Expiration. There are a few choices if you have positions that are expiring in the money: You can close the option position. You can leave the position open. However, if it's in the money, […]

Options

Short Put Strategies

When selling puts with no intention of buying the stock, you want the puts you sell to expire worthless. This strategy has a limited profit potential if the stock remains above strike A at expiration, but substantial potential risk if the stock goes down. The reason some traders run this strategy is that there is […]

Stocks

Short Selling Explained: An Introduction

Short selling is very different from owning stocks. It's more complex, carries more risk and requires a higher degree of responsibility on the part of the trader engaging in this practice. Before jumping in, you should understand how short selling works and what rules govern your investments, plus the potential risks and rewards involved. Knowing […]

Stocks

Short Selling Explained: Risks and Rewards

What is short selling, and what’s in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock’s price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn’t actually own the […]

Stocks

Short Selling Explained: Trading Strategies

How do you begin short selling as an investment strategy? A number of rules restrict which stocks may be shorted and the necessary conditions for shorting. This means you won’t always be able to short any stock you want, whenever you want. Working with an online brokerage service like Ally Invest ensures you have plenty […]

Options

Understanding Option Greeks and Dividends: An Introduction

In the options marketplace, the Greeks have zero to do with classic philosophers or toga parties (unless you're trading from the fraternity house). For option traders, the Greeks are a series of handy variables that help explain the various factors driving movement in options prices (also known as premiums). Many options traders mistakenly assume that […]

Trading

Swing Trading Strategies

A guide to Swing Trading for bullish and bearish traders. Swing Trading is a short-term trading method that can be used when trading stocks and options. Whereas Day Trading positions last less than one day, Swing Trading positions typically last two to six days, but may last as long as two weeks. The goal of […]

Options

Understanding Option Greeks and Dividends: Delta

One of the biggest mistakes new options traders make is buying a call option in order to try and pick a winner. After all, buying calls maps to the pattern you’re used to following as an equity trader: buy low, sell high, in that order. Options are trickier. Sometimes the underlying stock moves in the […]

Trading

How to Buy Stock Online

Step-by-step guide to online stock trading Buying stock with an online broker is easy – but you do need to know a few points before pulling the trigger on your online trade. Here are some pointers to get you started. Anatomy of a Stock Quote When you pull up a stock quote, the first thing […]

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