The Basics of Call Options (and How They Can Be Used as Part of Your Investment Strategy)
The emerald-cut rock you slipped on your partner’s finger while down on bended knee was a symbol of your intent to marry. But in some instances — for one reason or another — that diamond might not turn into an “I do.” You can think of a call option as the engagement ring of the […]
How Covered Calls Can Fit into Your Investment Strategy
Ok, so you may not be a professional day trader. But you are the type of investor who prefers trading individual stocks, options, and other securities on your own. So you’re always on the lookout for different approaches to implement within your own investment strategy. One option trading strategy that has gained momentum among DIY […]
How to Avoid the Top 10 Mistakes in Option Trading
When trading options, it’s possible to profit if stocks go up, down, or sideways. You can use option strategies to cut losses, protect gains, and control large chunks of stock with a relatively small cash outlay. Sounds great, right? Here’s the catch. You can also lose more than the entire amount you invested in a […]
Option Trading Terminology & Definitions
The technical jargon associated with option trading can often make it seem intimidating. That’s why we decided to create this option trading terminology cheat sheet to help you keep track of it all. Here are some of the more common terms you’ll hear in a room full of option traders. A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R […]
Yay or Nay: Is Option Trading Right for You?
Option trading is a viable option for any investor with the time and interest to learn the basics and understand the guidelines. Getting smart about what options can bring to your portfolio can go a long way toward helping you reach your full investment potential. Although investors of all stripes trade options, it’s not something […]
How Option Pricing Is Determined [Video]
For many investors, it’s appealing to buy a cheap stock and buy as many shares as you possibly can. You sound pretty good at a cocktail party, right? In the options world, that’s not always the case. Don’t wait until it’s too late, and too costly, to learn the basics of options pricing. If you […]
How to Read a Stock Option Quote [Video]
Learn how to read a stock option quote so you can understand the specific terms and conditions of the option contract very quickly. There are five parts of a standard stock options quote: stock symbol, expiration date, strike price, type, and premium. Watch this video to learn more. Did You Know? If you think option […]
What Is An Option? DIY Investing with Brian Overby [Video]
Typically, option traders are self-directed investors, meaning they don’t work directly with a financial advisor to help manage their options trading portfolio. As a do-it-yourself (DIY) investor, you are in full control of your trading decisions and transactions. While having complete control of your investments is desirable for some, it can also be very overwhelming […]
What Is Option Trading? 8 Things to Know Before You Trade
Investing with options— an advanced trader will tell you— is all about customization. Rewards can be high — but so can the risk— and your choices are plenty. But getting started isn’t easy, and there is potential for costly mistakes. Here’s a brief overview of option trading that cuts through the jargon and gets right […]
Long Call Spread Strategies
A long call spread gives you the right to buy stock at strike price A and obligates you to sell the stock at strike price B if assigned. This strategy is an alternative to buying a long call. Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy […]
