You may have heard it before. When you buy an options contract, you obtain the right to buy (for calls) or sell (for puts) shares of stocks before a predetermined period. You are not required to buy or sell, however. The price that you buy and sell is known as the strike price. The predetermined […]
“I’ll buy it when it’s a little cheaper.” It’s a common statement made by investors. Unfortunately, for those on the fence about buying shares, that day rarely comes. When a stock does get cheap enough, markets may be in selloff mode, and then the potential buyer still sits on the sidelines. But there’s a way […]
When you start investing, you may learn about “paper trading” as a method to test your trading skills. Some people believe it’s an excellent method to learn and become a proficient trader. Others think it’s a waste of time. Let’s go over some of the pros and cons of paper trading. If you have never […]
At some point in your options trading experiences, you’re likely to read or hear about “Greeks.” You may think that someone is referring to what type of food they want for lunch. However, in options trading it has to do with indicators on options prices. This article will help you get up to speed with […]
Most investors have heard horror stories about buying and selling options. And they are all true! Some of those stories are when someone has placed all their investment capital into one stock and prayed that it will go up. This isn’t investing. It’s rolling the dice at a casino. The house always comes out ahead. Let’s […]
You watched in horror while that stock you own dropped over 30%. The relief you feel now after it recovered is outweighed by the dread of watching it sink again. Or, you followed the adage to buy when there is blood in the streets and bought at the market low in March and neither want […]
Warren Buffett, also known as the “Oracle of Omaha,” is an investing legend. The chances are, if you have any experience with the stock market, then you know who he is. He is regarded by many as one of the best if not the best investor in the world. However, he does go about investing […]
Gold and silver have been on tremendous runs lately. Gold is up over 40% from its March low while silver has more than doubled. If you are long precious metals stocks, metals ETFs, or the metals themselves, congratulations on your gains. At this point, however, you might be asking yourself it’s time to look at […]
What if there was an indicator that can help you determine the tops or the bottoms of a market? That indicator would seem like a worthy inclusion in your trading tools, right? Many traders feel that the Put-Call Ratio (PCR) is just the indicator for the job of predicting the direction of the market. Before […]
Options investors should take the time to learn about market volatility. This measure can help investors with decisions about the overall trend of the market. The Chicago Board Options Exchange (CBOE) created an indicator that helps investors keep track of volatility. Appropriately, this index is named the Volatility Index or VIX. If you point your […]
