Wouldn’t it be nice to know the MAXIMUM loss-potential if an options trade completely flops??? Credit spreads enable one to do so, and if used wisely, they can be great sources of consistent income. This is a GREAT strategy for the so-called ” base-hit ” investor that acquires wealth steadily, as opposed to recklessly (Continue reading “THE STOCK MARKET: Using Credit-Spread Options Contracts for Weekly and Monthly Income”
Tag Archives: call options
THE STOCK MARKET: Options Contract Breakeven Price
Note: I am not an expert. This is information that perhaps should be learned prior to working with an expert. THE BUYING SIDE OF THE GAME Let’s say that a call options contract costs $0.40 cents per contract. Since options contracts are sold in groups of 100, the net purchase price of the contract isContinue reading “THE STOCK MARKET: Options Contract Breakeven Price”
THE STOCK MARKET: Call Options
THE MATHEMATICS OF OPTIONS TRADING : Let’s first consider a scenario where a single share of stock valued at $100.00 is purchased and subsequently sold at some later date. If this single share of stock increases in value by $6.00, a 6% profit will have been made if the stock is sold for $106.00, neglectingContinue reading “THE STOCK MARKET: Call Options”
THE STOCK MARKET: Selling Covered Call Options.
When the topic of options trading arises among most people, the topic discussed regards buying options in anticipation of a stock price moving in a predicted direction. If an options trader thinks the price of a stock will rise, s/he might purchase a ” call option “. A call option gives its owner the rightContinue reading “THE STOCK MARKET: Selling Covered Call Options.”
RENAISSANCE PHYSICS 