CHECK THIS OUT!!! This is the buying side of the game, and the maximum loss is the purchase cost of the contract ( $95.00 in this case ). An SPY ( S and P 500 Index ) put option was purchased. Each contract is worth $0.95, but options contracts are sold in groups of 100;Continue reading “THE STOCK MARKET: When a Put Option Contract Goes South ( Which is Good )”
Tag Archives: put 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 