Alibaba vs. J.C. Penney
When I’m looking to buy a stock or put on an option trade, I don’t look for a company like J.C. Penney.
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put and call options
In options trading, there are both put and call options.
A call option gives the buyer the right to buy 100 shares at a fixed price (strike price) before a specified date (expiration date). Likewise, the seller (writer) of a call option is obligated to sell the stock at the strike price if the option is exercised.
A put option gives the buyer the right to sell 100 shares at a fixed price (strike price) before a specified date (expiration date). Likewise, the seller (writer) of a put option is obligated to purchase the stock at the strike price if exercised.
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put and call options Archives
An End of Summer Q&A
It’s the last week of August, which means a few things. Volume in the market is drying up as most investors enjoy the last couple of weeks of summer.
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My Black Book
We don’t spend much time thinking about the news. Instead, we look at the market itself.
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TWTR Covered Call Option
You may already know Twitter (TWTR) the stock—it had its IPO late last year and is trading at 58.
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Controllin?g Your Risk
With stock markets staging a county fair Destruction Derby on Thursday and Friday, I want to dedicate this issue in favor of a piece on risk.
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Advantages of Options Writing
There is an alternative way to generate income that is available to equity investors through option writing.
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Handicapping Uncertainty
In essence, we discount uncertainty, and handicapping that discount has become an extremely complex task.
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Stock Market Performance from a Different Angle
Cabot Options Trader Editor looks at the long-term market average and gives his forecast of the market direction for the next year.
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Taming The Volatility Beast
Options are derivatives of stock and their prices are very strongly related to the amount of volatility in their underlying stocks.
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