In the current digital era, there are so many things that people can do to make money online. If you don’t know how to make money online, this article will take you through some of the most profitable online opportunities to keep your bank account growing. Online Blogging Blogging can make you as much money […]
How To Place An Options Trade Options are one of the most exciting and lucrative areas of contemporary finance. Not only can you achieve profits that are many times your initial investment, but you can also create highly complex and sophisticated positions that would be impossible with traditional securities. While options trading can be intimidating […]
Why You Should Care About the Effect of Dividends on Option Prices In theory the value of future dividends should be reflected in the current price of a stock, which then determines the price of the associated options of that stock. However, the actual mechanics of dividend payouts means that their effect on the price […]
What Is Quadruple Witching? Quadruple witching is a market event where several derivatives contracts expire on the same day. The simultaneous expiration of all of these hedging products creates tons of order flow and repositioning, resulting in significant volatility and market whipsaws. It’s called quad witching because these four types of contracts expire on […]
How to Trade Like A Casino: An Introduction to Credit Spreads Modern casinos have one of the simplest yet most brilliant business models in the contemporary business world: for every dollar that is wagered in the casino, they are likely to win $1.05 back. While they will not win every gamble, averaged over millions of […]
Are you aspiring to be a trader? Well, in the trading world, it is important to figure out what type of trader you want to be. There are several factors one needs to consider in order to select the right path. Some of these factors include time, personality, size of the account, skill level and […]
The open interest for an option is the total number of outstanding or open, not delivered or closed, options or futures contracts that are in effect on any given day, to be delivered at a particular date. It is most often associated with the options and futures markets, where the existing number of contracts will change […]
Collars are protective strategies involving options that are used after a long position in a security has already achieved a significant increase. Investors use the collar strategy through the purchase of out-of-the-money put options and the selling of out-of-the-money call options. This techniques is also known as hedge-wrapping. In general investing terms a collar is […]
When it comes to trading, numerous strategies can be used with the aim of financial success. They (strategies) are designed to achieve profitable returns by either going long or short in the markets. For a strategy to be termed as good, it should be verifiable, consistent and objective. What is a straddle? This refers […]
A credit spread involves simultaneously selling and purchasing an option on the same underlined futures contract but at different strike prices. The option that you sell is going to be at a higher level or closer to money than the option you purchase, resulting in a net credit for the trade. Options that are closer […]
