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Article Archive For Keyword: Option
Download10 How-Tos For Option Trading
ARTICLE SYNOPSIS...Trading options can be risky business at best and disastrous at worst. Here, then, are 10 how-tos on how to handle it.
10 How-Tos For Option Trading by Ron Ianieri
A Low-Risk, High-Potential Return Option Strategy by Jean-Olivier Fraisse, C.F.A.
ARTICLE SYNOPSIS...A Low-Risk, High-Potential Return Option Strategy by Jean-Olivier Fraisse, C.F.A. Can call options be used as a substitute for purchasing stocks? Covered calls -- selling a call on stock being held -- is one low-risk strategy, but profits can be limited o
A Simple Option Strategy
ARTICLE SYNOPSIS...Trading options has always been a mystery to many, but with all the new weeklys and binary options that are hitting the market, they are now a strategy that should be looked at.
Adjusting Option Trades With Bill Ladd by John Sarkett
ARTICLE SYNOPSIS...Adjusting Option Trades With Bill Ladd by John Sarkett Bill Ladd, a full-time, independent option trader, spent 20-some years in the pharmaceutical industry (Burroughs Wellcome, which became Glaxo Smith/Kline) as a certified internal auditor and a certi
Backtesting Option Strategies
ARTICLE SYNOPSIS...Looking for a quick way to backtest option strategies? You can use Excel to count occurrences of historical prices outside a price band you set to develop an expectation for future price movement. Here's how.
Choosing A Binary Option Provider
ARTICLE SYNOPSIS...What are binary options and what should you look for-and avoid-in a provider? Here's a rundown
Compare Option Strikes With This by Tim Zurick
ARTICLE SYNOPSIS...Compare Option Strikes With This by Tim Zurick How do you compare options with different strikes, margin requirements, and expiration dates? Here's a tool that will help you make that decision. More bang per buck: Many businessmen will tell you that th
Copper Fundamentals, Technicals, And An Option Play
ARTICLE SYNOPSIS...The copper market was hit especially hard during the massive commodity slide of 2008, but now that the dust has settled, some signs of life remain.
Customer Option Activity by Arthur A. Merrill, C.M.T.
ARTICLE SYNOPSIS...Customer Option Activity by Arthur A. Merrill, C.M.T. The Options Clearing Corporation issues a weekly report to subscribers that lists the totals of options bought and sold on all exchanges nationwide. The transactions are segregated by customer, marke
Directional Strategies For Option Trading
ARTICLE SYNOPSIS...Option trading has a big edge over stocks when it comes to leverage and risk control, but a trader must understand how to apply the principles of timing, using delta, and profit taking to succeed.
Dividends And The Risk Of Early Option Assignment
ARTICLE SYNOPSIS...Selling calls on stocks always presents a risk of early assignment when the calls are in-the-money. Stocks that have dividends present an even greater assignment risk when they are in-the-money and when the extrinsic value is low. Here is what you should
Equivalent Option Strategies by Lawrence G. McMillan
ARTICLE SYNOPSIS...Equivalent Option Strategies by Lawrence G. McMillan Stock option traders and futures option traders may think they're already outsmarting stock and futures traders by trading options against their stock or futures positions, but Larry McMillan, author
Four Tips For Trading Income Option Spreads
ARTICLE SYNOPSIS...If stock trading can be compared to playing checkers, then option trading is like playing chess with the market.
Identifying Trades With The Option Premium Ratio by Christopher Cadbury
ARTICLE SYNOPSIS...Identifying Trades With The Option Premium Ratio by Christopher Cadbury What is the option premium ratio? Simply, the option premium ratio is the ratio of price premiums on puts relative to price premiums on calls. It covers all listed equity options.
Int: Which Option Strategy Should You Use? Guy Cohen Tells You by J. Gopalakrishnan
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:8 (52-56): Int: Which Option Strategy Should You Use? Guy Cohen Tells You by J. Gopalakrishnan Guy Cohen, creator of the OptionEasy software and author of the books ""Options Made Easy"" and ""The Bible Of Options Strategies,"
Interview: Put Option Selling With Lee Lowell
ARTICLE SYNOPSIS...With 26 years of options trading under his belt, including trading crude oil and natural gas contracts on the floor of the NYMEX, Lee Lowell has figured out a way to conservatively trade options so traders can earn a steady income. You can find more abou
Looking At Minute-By-Minute Stock Option Data Part 2: Short Margins
ARTICLE SYNOPSIS...Can retail traders make more money using straddles or strangles than by just buying a call or put? Can retail traders make money using option strategies that include margined short option positions? We explore these questions here using the minute-by-min
Looking At Minute-By-Minute Stock Option Data, Part 3: Alternatives To Black-Scholes
ARTICLE SYNOPSIS...Many concerns have been expressed over the years about the assumptions made by the Black-Scholes model (and some other option models) with regard to the volatility and continuity in the markets. When trading very short-term option contracts, do the model
On Option Theta by Lawrence D. Cavanagh
ARTICLE SYNOPSIS...On Option Theta by Lawrence D. Cavanagh Options traders use various measurements to calculate an option's risk, the calculations of which are denoted by Greek letters. One example is theta, which is the measure of how much an option's price decreases fo
Option Credit Spreads On Commodities by Sam Bhugaloo
Option Credit Spreads by Lee Lowell
ARTICLE SYNOPSIS...Limited Risk With Limited Profit Option Credit Spreads Selling options is usually a good idea. Here's a tactic to do it. by Lee Lowell Option trading all comes down to probability of profit. Statistically, option sellers always have a better chance of
Option Dynamics by Dennis Peterson
Option Evaluator by Hans Hannula, Ph.D.
Option Master second edition
Option Simulator/RT, version 2.0
Option Strategies With Roy Radziszewski by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS...So often, options are something that you can take or leave, but sometimes they catch your interest and never let go. That seems to have been the case with Roy Radziszewski, the product manager of option products for TradeStation Securities, who began
Option Strategies and Neural Networks by Thomas B. Rubino Jr.
ARTICLE SYNOPSIS...Option Strategies and Neural Networks by Thomas B. Rubino Jr. Confidence intervals are a statistical tool that describes the accuracy of a prediction, while neural networks provide predictions. This article combines the two to define the risk in a trade
Option Valuation Model by Steve Barr
ARTICLE SYNOPSIS...Option Valuation Model by Steve Barr Radix Research Limited 1652 Mount Batten Pl. Victoria, B.C., Canada V8S 5J9 (604)592-5308. Product: Stock options evaluation program. Price: $250 Canadian. Equipment: IBM PC/XT/AT Have you ever bought a cheap
Option Volatility Surges In TNA
ARTICLE SYNOPSIS...When markets drop hard and fast, option volatilities can rise dramatically, and right now, option premiums are some of the fattest available since the market volatility of 2007 to 2009.
Option Writing And Seasonal Tendencies In Nat(ural) Gas
ARTICLE SYNOPSIS...The inexact but powerful tool of seasonal price forecasting really comes into its own when paired with the strategy of option selling. Here's a perfect example
Option premiums by Arthur Merrill
ARTICLE SYNOPSIS...Option premiums by Arthur Merrill Can we derive useful information about the future direction of the stock market from option statistics? I've found one item of data that has a good prediction record--the ratio of the premium on puts to the premium on ca
Option shooters vs. spreaders by Jerry Kopf
ARTICLE SYNOPSIS...Option shooters vs. spreaders by Jerry Kopf Option market timers and option relationship traders occupy major places in the spectrum of call and put investors. Timers or ""shooters"" go for the ""home run"" by simply buying premium (i.e., going long a p
Persistent Option Volatility by Roger Ison, Ph.D.
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:8 (14-20): Persistent Option Volatility by Roger Ison, Ph.D. Do you really understand what your options model is doing? Let's find out. If you trade options, you know that mathematical option models are essential tools and, g
Product Review: Option Evaluator by David Penn
Product Review: Option Pro On-Line, version 2.1
Product Review: Option Pro by John Sweeney
Product Review: Option Simulator/RT
Product Review: Option Tutor ver 2.0
Product Review: Option Wizard with backtest
Quick Scan: Option Advisor
Quick Scan: Option Money by Dennis Peterson
Quick Scan: Option Strategist Online Seminar Series by John Sweeney
Quick Scan: The Essex Option Trading Seminar video
Quick Scan: The Four Biggest Mistakes In Option Trading
Quick Scans: The Pro-Vest Option Trading Method
Quick-Scans: Millionaire II, Comcalc, Option Strategies
Quick-Scans: Using Option Charts To Boost Trading Profits by Dennis D. Peterson
Real-World Option Pricing by Lawrence D. Cavanagh
ARTICLE SYNOPSIS...Real-World Option Pricing by Lawrence D. Cavanagh Option models calculate premiums or the prices of options on the assumption that volatility is a constant. Here's how stock and index price changes are distributed in the real world and how the market pr
SIDEBAR: Option price sensitivity and the Greek alphabet
ARTICLE SYNOPSIS...SIDEBAR: Option price sensitivity and the Greek alphabet To analyze the risk/reward profiles of option strategies, traders measure the sensitivity of option strategies to unit changes in independent variables such as the price of the underlying security
SIDEBAR: THE OPTION DELTA by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE OPTION DELTA by Technical Analysis, Inc. Simply stated, the delta of an option is the amount by which the option will increase or decrease in price if the underlying instrument moves by 1 point. The deltas of call options have positive values, while
SIDEBAR: USING OPTION RATIOS
ARTICLE SYNOPSIS...USING OPTION RATIOS To many traders and investors, the limited-risk aspect of the purchase of both call and put ratios is appealing. Many market followers believe that when the major activity is concentrated in either calls (bullish expectations) or put
SIDEBAR: USING OPTION RATIOS
ARTICLE SYNOPSIS...USING OPTION RATIOS AnCall/put TRIN as a market sentiment indicator, page 64. To many traders and investors, the limited-risk aspect of the purchase of both call and put options is appealing. Many market followers believe that when the major activity
Static Option Income Strategies: Do They Work?
ARTICLE SYNOPSIS...If you're trading options, you've probably heard of static option income strategies. They promise low but almost riskless profits every month by selling premiums in up, down, or sideways markets, and you don't have to make any predictions about the direc
Stock and Future Option Trading
ARTICLE SYNOPSIS...Stock and Future Option Trading Trading in stock and futures options is one of the least understood yet potentially most rewarding forms of investing for the individual, professional trader and institutional investor. While trading in stock options can
Stocks & Commodities V. 26:1 (52-57) A Structured Approach To Option Trading by Jay Kaeppel
ARTICLE SYNOPSIS...A Structured Approach To Option Trading by Jay Kaeppel This is the first in a series of articles about option trading with the PROVEST option trading method. The PROVEST method is not a trading system. Rather, it utilizes a series of criteria that can a
Strategy Design For Option Traders
ARTICLE SYNOPSIS...Need a clear picture of what it takes to employ a successful trading strategy? Here it is
Technically Challenged Cameco Yields Option Opportunity
ARTICLE SYNOPSIS...After an 80% plunge in five months, Cameco's inflated option premiums may offer creative profit opportunities for traders and investors.
The Option Premium Ratio And The DJIA by Christopher Cadbury
ARTICLE SYNOPSIS...The Option Premium Ratio And The DJIA by Christopher Cadbury The discussion on the option premium ratio continues, with more examples on forecasting short-term movements in the DJIA. Previously, I introduced the option premium ratio, which is the rati
The Option Premium Ratio by Christopher Cadbury
ARTICLE SYNOPSIS...The Option Premium Ratio by Christopher Cadbury Christopher Cadbury, member of the American Stock Exchange and book author, explains a sentiment indicator generated from the equity options market that identifies trading opportunities in the stock market
The Professional Option Trader's Manual by John Sweeney
ARTICLE SYNOPSIS...The Professional Option Trader's Manual by John Sweeney Author: David L. Caplan Publisher: Opportunities in Options P.O. Box 2126 Malibu, CA, 90265 Price: $70 (or $150 with a three-month subscription to Opportunities in Options) Despite its name, thi
The Third Dimension Of Option Trading by Don A. Singletary
ARTICLE SYNOPSIS...The Third Dimension Of Option Trading by Don A. Singletary Here's how you can profit from trading volatility. Sometimes when you purchase an option, you might see the underlying futures contract move in your favor, perhaps enough to overcome the time d
The ViPar Option Strategy For Trading Market Declines
ARTICLE SYNOPSIS...This put-buying option strategy involves purchasing VXX put options while purchasing an SPX put debit spread. Find out how it's used
The secrets to stock option success by Patrick D. Bosold
ARTICLE SYNOPSIS...The secrets to stock option success by Patrick D. Bosold Author: Kenneth R. Trester Publisher: Institute for Options Research, Inc., P.O. Box 12340 Reno, NV 89510 (800) 334-0854, Ext. 840 Contents: Ten cassette tapes, 270 page manual, Future Value
Trading News-Driven Events With Option Straddles
ARTICLE SYNOPSIS...Learn to make huge gains with option straddles where you can control risk, even when market direction is uncertain.
Updating Option Ratios With Market Sentiment by James P. Martin
ARTICLE SYNOPSIS...Updating Option Ratios With Market Sentiment by James P. Martin Is it true that market sentiment indicators no longer work? That's the word from many traders and market timing advisors in the past several months. They say that so many ""pseudo contraria
WTI Weekly: The $65 Option Wall Served As Support Into Late November.
ARTICLE SYNOPSIS...In this article, we examine the order flow and limit order book data in the WTI futures market that provides insight into the sell-off and subsequent rally at key support on Tuesday, November 30, 2021. Market structure and order flow provide insight into
What I Learned When I Looked At Minute-By-Minute Stock Option Data, Part 1
ARTICLE SYNOPSIS...Coming up with new option strategies to trade isn't easy. Sometimes, looking at things in a new way gives you a fresh perspective
Writing Covered Calls Part 2: Opportunities For Option Sellers
ARTICLE SYNOPSIS...Last time in part 1, we looked at using the option strategy of writing covered calls, including what to consider when you go to write (sell) a covered call. This time, we look at some ways to implement and structure your covered call writes, and consider
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