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You will find many great Stock Market articles in this section. Our goal is to bring you the highest quality content that you want to read. If you have any suggestions for future articles, please contact us.
You will find many great Stock Market articles in this section. Our goal is to bring you the highest quality content that you want to read. If you have any suggestions for future articles, please contact us.
Because the actual calculation, and sometimes even the discussions, of volatility involve some fearsome mathematics, novice options traders often forgo learning about it. Those traders are at a dis...
By: J.Morgan
In Part I, we outlined an example. MSFT (Microsoft) stock with a current market price of $27, and a June 30 call option with premium of $2. (I.e. an option whose characteristics are: contract to bu...
By: J.Morgan
Unlike stocks, options have an expiration date. Unless a company goes bankrupt or buys back all its stock, the stock investor always has the choice to wait for a price correction. Sometimes that wa...
By: J.Morgan
Risk isn't inherently bad. Without it, there would be far fewer opportunities for profit. In particular, there would be no options market at all. No one would have to speculate on price direction o...
By: J.Morgan
There are several basic trading strategies, but in order to execute any of them successfully an investor new to options will need to know some elementary concepts. The most basic are the ca...
By: J.Morgan
Options trading can become very complicated very quickly. There are LEAPS (long-term contracts), choosers, barriers, compounds (exotics) and a host of technical parameters to measure volatility and...
By: J.Morgan
Stock and Bond trading strategies run the gamut from the simple 'buy and hold forever' to the most advanced use of technical analysis. Options trading has a similar spectrum. Options are a ...
By: J.Morgan
There exist today an array of charts, patterns and statistical analyses large enough to please even a Medieval numerologist. Though it often looks and reads much like mathematical tea-leaf reading,...
By: J.Morgan
There are more kinds of risk than there are investments, since every instrument carries several kinds. But risk isn't inherently bad. Without it there'd be fewer opportunities for profit. T...
By: J.Morgan
You often see the phrase 'options and futures', as if the two were financial Siamese twins. But, though similar, there are important differences the savvy investor should keep in mind. Both...
By: J.Morgan
Most commodities trades are executed in the form of futures contracts. A specified percentage of the asset price is paid and a buyer accepts the obligation to deliver (or take delivery of) a set quantity of the good at a f...
By: J.Morgan
Why aren't paintings commodities? Because each one is unique. Commodities are uniform and one individual or portion serves the same purpose as any other. An ounce of gold, a barrel of oil, a bushel of wheat. In every case,...
By: J.Morgan
Investors come in all flavors. Some are bold, whether they have the capital to lose or not. Some are cautious and regard capital preservation, with the hope of some small return over a long period, as the paramount value. ...
By: J.Morgan