tag:blogger.com,1999:blog-93772942009-06-29T16:11:23.982+08:00Options Trading ProfitsMomentum Strategies that Build your Wealthadminnoreply@blogger.comBlogger20125tag:blogger.com,1999:blog-9377294.post-1119169516563642652005-06-07T16:23:00.000+08:002005-06-19T16:30:02.420+08:00Trading options made easy. Really?Most people are looking for the holy grail. The ONE solutionthat will solve all their options trading problems once and for all.To be frank, there is no such cure-all system.You should know better by now, that we are not living in a perfect world. :)Trading options can be made easy, provided thatyou learn the basic strategies and apply them into yourtrading plan immediately to get some adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1117553265970836522005-05-31T14:07:00.000+08:002005-06-19T16:31:36.696+08:00Optionetics - Investment education resourcesOptionetics - A good place for you to learn more about options trading.Their philosophy is traders can make money in any market that lookspromising by focusing on combining stocks with options in clearlydefined strategies.A few areas where you can explore : Stock and Options Portfolios - an electronic method of tracking stocks and trades as they change value due to market movement. adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1117551611025407222005-05-27T14:49:00.000+08:002005-05-31T23:04:58.200+08:00Neutral Options trading strategiesNeutral options trading strategy will have greater gain inthe a stable markets. Investments using this strategy is notsuitable for a volatile market.Below are the list of neutral option strategies:REVERSALPrimarily used by professional traders, a reversal is anarbitrage strategy that allows traders to profit when optionsare underpriced. To put on a reversal, a trader would sell stockand use adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1117550927689506652005-05-24T15:38:00.000+08:002005-05-31T22:48:47.693+08:00Bearish options strategiesBearish options trading strategy will have greater gain inthe a falling markets. Investments using this strategy is notsuitable for a rising market.Below are the list of bearish option strategies:LONG PUTFor aggressive investors who have a strong feeling that aparticular stock is about to move lower, long puts are anexcellent low risk, high reward strategy. Rather than openingyourself to enormousadminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1117549909674842442005-05-20T16:36:00.000+08:002005-05-31T22:44:31.076+08:00Options StrategiesOptions Strategies are divided into 3 categories: Bullish Neutral Bearish You'll need to apply the appropriate option strategy if you wantto make the most profit.You must analyze the overall market trend and individualstock direction before even consider to enter the trade.Bullish options trading strategy will have greater gain in arising markets. Investments using this strategy is adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1116979705229754092005-05-17T15:22:00.000+08:002005-05-25T08:08:25.260+08:00Options Trading as a BusinessI treat options trading as a business.You might have your own expectation at this point oftime but let me share with you how it excites me! I like the thrill of trading options and being able to earn extraordinary profits in a short period of time. No employees - you don't have to worry about hiring and firing. No selling - I hate selling and I don't want to persuade my friends and family adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1115894504613601972005-05-12T16:17:00.000+08:002005-05-12T19:04:05.706+08:00Why use options?Options are tools that if used properly can greatly increaseyour alternatives when investing in the stock markets.These are the ways you can use option that are not availablewhen purchasing stocks: Hedging. Think of this as an insurance, just like your car or house. You can shield your portfolio from market downturns to limit your losses, and enjoy the full upside. You are able to purchase adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1115894365887151162005-05-11T15:52:00.000+08:002005-05-12T19:02:39.660+08:00Option PremiumPremium is the price of the options.The option premium is determined by a number of factorswhich includes : Stock price Strike price Time remaining until expiration (time value) Volatility However, the premium may be affected by Interest rates Market conditions dividend rate An option premium is priced on a per share basis. One contractof option corresponds to 100 shares. Thereforeadminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1115894265335542702005-05-10T13:36:00.000+08:002005-05-12T19:02:17.460+08:00Expiration DateThe day on which an option expired (on the 3rd Friday of theexpiration month). After that date, the contract is no longervalid and you lose the right to buy or sell the stocks at thespecified price.Usually, you could find the available options for the currentand next month as well as specific future months. There are3 fixed expiration cycles available with a four-month interval: January, April,adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1115894187278232232005-05-09T14:22:00.000+08:002005-05-12T19:01:56.866+08:00Options Strike PriceThe price at which an underlying security (stocks) can be purchasedor sold if the option is exercised. You'll make a profit whenstock price goes above (for call) or go below (for put) the strikeprice.Options are available in several strike prices.Stocks priced below $25/share usually have strike pricesat $2.50 intervals. For e.g. $10.00, $12.50, $15.00Stocks priced above $25/share will have a adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1115894124897483732005-05-06T16:33:00.000+08:002005-05-12T19:01:33.436+08:00Call and Put OptionsCall options: These are contracts that give holder the right, butnot the obligation to buy an asset (i.e. stocks in our case) at aspecified price before the date of expiration. The buyer expect theprice of the underlying stock to go up.Put options: These contracts will give the holder the right, butnot obligation to sell the stocks at a specified price withina specific period of time. Buyers of adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1115893947846681222005-05-03T16:28:00.000+08:002005-05-12T19:01:08.240+08:00What is an option?An option is a contract giving the buyer the right, but not obligation,to buy or sell a security at a specified price (strike price), on orbefore a specified date (expiration date).Confused? Let me explain it with a story...Say for example you discover a house that you'd love to purchase.However, you don't have the cash to buy the house at $700,000.In order to secure the attractive price, you adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102669570047829452005-04-28T16:59:00.000+08:002005-05-18T21:56:57.113+08:00Special gift for you...I'm going for a short break this weekend.I've special gift for you.Claim your gift by visiting the following link:Click to downloadI'll be back with more options trading guide.Go for profit$adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102408495268064452005-04-26T16:34:00.000+08:002005-05-12T18:58:32.440+08:00Final touch on Personal FinanceI must admit that this site is not intended to providean in-depth discussion on personal finance and basicsof investing.But I feel obligated to give you a few short guidelinesto help you build a strong foundation for options trading.Options Trading is a short-term and high leveragedinvestment vehicle. You'll lose your shirt if youare blindly risking your money.Below is a list of action steps (in adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102400219518284822005-04-25T14:11:00.000+08:002005-05-25T08:19:57.606+08:00Personal Power BudgetHome budget is essential for you to keep track ofyour money. In the last few days I have stressedthe importance of having a personal finance budget.Budget software like Quicken and Microsoft Moneyare good commercial products, and I recommend youto get one of them to get started.However, for those that can't afford it or don'twant to spend time installing and learn a newsoftware, I got good news adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102267902445181522005-04-22T13:46:00.000+08:002005-05-12T18:57:33.753+08:00The power of compoundingThe greatest mathematical discovery of all time.- Albert EinsteinWhat is so great about compounding in investing?Basically it is a process of generating profits on anasset's reinvested earnings.I call it the "investment accelerator".It requires 2 ingredients to work :- time- reinvested earningsLet's look at an example, shall we?You have $10,000 to invest, and found an investmentthat will give youadminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102264207442948612005-04-21T14:28:00.000+08:002005-05-12T18:57:11.213+08:00What is investing?The act of committing (money or capital) in order to gainfinancial return.In other words, it means putting your money to work for you.Since young, we were taught to go to school to get a degreeand work in a big company. And by doing that, our future willbe assured.I don't think you believe that anymore, otherwise you won't bereading this. :)Basically we are trading time for money. If you want adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102260725578201562005-04-19T14:31:00.000+08:002005-05-12T18:56:49.113+08:00Green or Red ?Tell me... what is the color of your report card?If it's green, great! You are on the right trackand just passed the first round. But don't be toohappy, you'll learn why...For those who got a red. Don't be despair.It's not the end of the day. In fact I am proud of youfor being honest with yourself. Not many people dareto look at their numbers, and I must salute you.As you can see, it's just a adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102048315648963442005-04-18T13:30:00.000+08:002005-05-12T18:56:28.206+08:00Options Trading 101 : Check your foundation!Where are you now? I mean financially...There are many ways you can describe it...- I have a high paying job- I own a house- I use the latest mobile phone- I wear branded clothes only... and by the way... I'm happy ok?Hmmm...So, are you "showing" me what you have bought?Is that what wealth is all about?I don't think so.To answer this question, all I wanted to know is whetheryou are red or adminnoreply@blogger.com0tag:blogger.com,1999:blog-9377294.post-1102052589401298292005-04-14T15:30:00.000+08:002005-05-14T09:58:23.906+08:00Options Trading : First Thing First<!--google_ad_client = "pub-3180790103897445";google_ad_width = 250;google_ad_height = 250;google_ad_format = "250x250_as";google_ad_type = "text";google_ad_channel ="8283451924";google_color_border = "FFFFFF";google_color_bg = "FFFFFF";google_color_link = "0000FF";google_color_url = "000000";google_color_text = "000000";//--> src="http://pagead2.googlesyndication.com/pagead/show_ads.js">I know adminnoreply@blogger.com0