Options Trading System

Options Trading Tips

Technical Analysis - In order to predict the future direction of the market, technical analysis based on options volume is a very powerful tool.

Options Trading - When volatility is at high levels and the stop loss point on a particular stock is at about the same price as the cost of an option, Options are the preferred vehicle.

Call Put Ratio - To calculate the Put/Call ratio, divide the volume of put option contracts by the volume of call option contracts. Chicago Board Options Exchange (CBOE) calculates this ratio.

Expiration Cycle - Expiration dates applicable to options of listed securities is referred to Expiration Cycle. There are three major cycles for options (not LEAPs).

Options Expiration Strike - The price and date at which an option can be exercised, is the Strike Price and Expiration Date...

Stock Options - As a form of compensation, some companies issue stock options to employees. Incentive Stock Options (ISO), or Nonqualified Stock Options (NSO) is the general form which these stock options take.

Intrinsic Value - An option has intrinsic value when it is in-the-money. For an in-the-money call the intrinsic value is equal to the underlying asset price less the strike price.

Index Trading - Unpredictable events such as news, rumors and earnings reports fluctuate the price and volume for individual stocks.

LEAPS - Leverage is one of the great advantages that options provide. For a small amount of money, you can control a large holding in an asset.

Options Margin Requirements - When an investor borrows money from a brokerage house to cover part of the purchase of a security, an investor is borrowing on margin.

Margin Calculator - Calculate how many put contracts you may sell short and what premium you may receive. receive.

Liquid Options - List of the most liquid index and ETFs options that have high trading volume. They could be easily bought and sold on the options market.

Puts and Calls - Short description of put and call options, their comparison and how they are traded.

Options Symbol - Structure of constricting old options symbols that you may see in our history (when old options symbols structure was used).

Selling Calls - This article discusses selling covered and uncovered call contracts.

Naked Options - When an investor sells a call option without owning the underlying asset or without depositing funds to cover the exercise value of the call, a naked call (uncovered call) occurs.

Call Options - A call options buyer is a trader who believes in a rising market and expects to profit from an upward price move. By buying calls an options trader is buying a right to purchase the underlying stock at a specific price, at or before the expiration date.

Stock Options - Nonqualified Stock Options are generally easier to establish and administer and are generally less restrictive than Incentive Stock Options.

Beta - How a stock's movement correlates to the movement of the overall stock market is measured by beta. Beta is related to but is not the same as volatility.

Bid Ask - Commonly used options terminology.

Options Price - Option pricing techniques have reached a level of sophistication that transformed the option trading market into the hugely lucrative industry that it is today.

Options Pricing - The Binomial Model for pricing American stock options was founded by Cox, Ross, and Rubenstein in 1979.

Options Style - Options that can be exercised anytime up to their expiration date, are American Style Options (American Options).

Options Type - About various types of stock options: listed, unlisted and employee stock options.

Old Options - See how option symbols were build prior to 2010. Our trading system is live since 2005 and you may see these symbols in our history - see here how to read them.

Buying Strategy - An example of one of the possible strategy to buy options contracts. You may try customizing it and adopting rules that would fit your personal investment style.

Options parameters - This article discuss several options parameters such as options fair value, open interest and expiration date.

Options Volatility - The Volatility of an asset, which usually is quoted as the annual standard deviation of an asset' price, provides a measure of the random variability or dispersion of price per unit of time.

Puts - Short description of the put contracts with an example to show mechanics behind its trading.

Calls - Shortly about call contracts and about main principles behind trading calls.

Options Glossary - list of the most used terms in the options trading.

Options Trading - Short dictation about main principles in options trading - mainly for an options buyer with an example of rules to cut losses and take the profits in time.

Stock Market - general description of the main stock market terms used in the stock trading.

Market Exchanges - Short excurse into the opportunities of trading on the major stock market exchanges: NYSE, Nasdaq and Amex.

Sell Buy Options - By comparing the benefits (outlined in the table above) of selling short options and of buying long options, it becomes evident that option sellers have more opportunities to profit.

Market Timing - Options Market Timing is a method of analyzing past trends in options volume and options cash volume, to accurately forecast the future direction of the market.

QQQ - The QQQ is ETF (Exchange Traded Fund) that tracks the NASDAQ 100 Index.

Stock Research - The description of common and preferred stocks with explanation on the main steps in stock research that should be done before going into building a trading system.

Market Timing - Short discussion about importance of developing a market timing strategy for successful trading on the stock market.

ETFs - Short discussion with points why ETFs should be used as an investment vehicle and what are the ETFs advantages when it comes to a choice between stocks and ETFs.

ETFs - Exchange Traded Funds are ne of the most popular investment vehicle on the stock market that attract retail and institutional traders.

Nasdaq 100 - General information about the Nasdaq 100 index and various ways to trade this index (from ETFs to index tracking emini futures).

Nasdaq Indexes - This is the sort description (excurse) into the world of the Nasdaq indexes.

Nasdaq 100 System - In this article you will find an example of how Nasdaq 100 index analysis could be used to trade stocks listed in the index.

Nasdaq 100 Funds - Nasdaq 100index tracking funds that are traded after the market closes.

QQQ Analysis - Example of the mid- and long-term analysis of the QQQ (Nasdaq 100 tracking stock) based on some of the most popular technical indicators.

SPY Analysis - The example of the SPY (S&P 500 tracking stock) technical analysis for mid- and long-term.

SPY Support/Resistance - Support and resistance levels for the SPY stock. The support resistance levels are based on the Pivot Points. This is only an example.

QQQ Support/Resistance - Another example of Pivot support and resistance points applied to the QQQ stock. This is an example as well.

Trading System - Short explanation about trading systems, what could be called and what cannot be called as a trading system.

Economic Calendar - See what to pay attention to in the next five trading session - coming economic reports - Economic Calendar.

Volume Analysis - a couple of resources that may help you in learning basics of volume based technical analysis that is used in our system in junction with volatility analysis to generate signals.

Why Options - Discussion about main reasons why investors are trading options

Most traded ETFs - See the list of the most traded Funds like QQQ, SPY, IWM and etc and their description.

DJI Index -Absolut the DHI index and how the Dow jones industrials index could be traded on the stock market.

S&P 500 index - About the S&P 500 index as a barometer of the U.S. market and how the S&P 500 index could be analyzed and traded on the stock market.

S&P 500 Components - List of the stocks listed in the S&P 500 index - S&P 500 components (stocks listing).

Technical vs Fundamental Analysis - Discussion and comparison of fundamental and technical analysis, their role in making a trading decision and whet and when should be used.

Technical Analysis - About different types of technical analysis and different groups of technical indicators.