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26 OPTIONS STRATEGIES PART 4
... share price appreciation with the options premium. Compare this with the stock market
investor who did not write options and only received $500. What is the maximum upside profit in
this example? Whether the shares of Mastercard are at $240.01 or $500 the effect to you is the
same. Why is that? Since ...
53 OPTIONS SPREAD STRATEGIES BULL CALL
TWO
... share. Now our total risk is $1.30 per share, but our upside potential is the difference
between the strikeprices minus our net premium debit. This means our upside potential is $3.70 per
share. The Trading Scenarios If the stock stays below the $37 strike price and our options expire
worthless, we suffer ...
14 OPTIONS SCREENING PART 2
... represented in percent form. The red line symbolizes the S&P500 index during the same
time frame. A simple glance reveals the truth that growth stocks fare better in bull markets while
suffering worse during bear phases. We can use this knowledge to our advantage by trading call
options in a bull ...
68 TECHNICAL EXIT STRATEGIES PART ONE
... PSAR By now we know that having an exit strategy is essential. But which one is best? The
method you pick ultimately depends on the methodology behind your investing. Is your trading window
short term or long term? Is this a high risk / high reward scenario, or a low risk and small profit
spread? One ...
20 OPTIONS GREEK GAMMA
... 1.0 then your original eight cent investment would see a return of over twelve times should
the underlying stock move just one dollar. This improbable circumstance highlights that the most
money to be made in options is from an increase in te Delta value, which is what the Gamma
represents. If your leverage ...
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