call option trading

Option Play Book – Long Call Option

Learn about options with the Option Play Books from Paul Brittain of www.CommodityTradingSchool.com. Master the 19 primary option trading strategies for trading options on commodity futures contracts.
Video Rating: 5 / 5

Market trading expert and Senior VP at Libanman Futures, Fred Oltash, explains value oriented options trading strategies. Discussion analyses options skew, implied volatility, and combining options call spread with options put spreads to generate value oriented trading.

Now Over 100 Weekly Options for First Time Ever!

Now Over 100 Weekly Options for First Time Ever!

Weekly options returns

Orem, UT (PRWEB) October 18, 2011

Given the recent volatility in the market, investors are looking for ways to more effectively generate income with less risk. Weekly options provide another choice for income investors in this unsure market, while reducing the time required to hold short call options. As of October 18, 2011, there are now over 100 stocks, ETF’s, and indexes permitted to trade Weekly options! From the data analysis done by the financial education service CoveredCalls.com, 58 of these Weekly positions were returning covered call premiums of over 1.0 percent (per week), as of the 10-13-2011 data analysis update for clients. As of the same date, the Weekly covered call premium on the iShares Russell 2000 Index (IWM) was returning 1.72% and the Weekly premium on the SPDR S&P 500 (SPY) was 1.30%.

The pool of available Weekly vehicles continues to grow, with ten (10) new positions added most recently. The Weekly options list can be found at the CBOE.com website under the “Available Weeklys” section.

The premium “seatbelt investing (TM)” (SBI) service at CoveredCalls.com helps investors find, research, and analyze Weekly investments. The SBI list shows the Weekly call bid, the premium percentage return, and important technical indicator values such as the RSI (Relative Strength Index) to help investors make informed decisions.

New Weekly options series are posted each Thursday, except the Thursday prior to the week of the third Friday of each month (which is the standard monthly options expiration day). During this week of the normal monthly options expiration, the last week of the monthly option is used as the Weekly option surrogate.

Premium returns from selling covered calls on Weekly options varies from about 0.5 percent per week, up to 6 percent per week, depending on market volatility. Risk can be controlled by purchasing put options as insurance on the underlying stock or ETF, and the SBI service shows these “insurance policies” on the Weekly options table at CoveredCalls.com.

CoveredCalls.com will be hosting a live webinar on Saturday, October 22, 2011, at 12:00 noon (Eastern Time) where a preview of the premium “seatbelt investing(TM)” (SBI) service will be shown, and the Weekly options data table will be demonstrated live.

WEBINAR DATE: Saturday, October 22nd, 2011

WEBINAR TIME: 12:00 noon (Eastern Time)

Register for the live preview webinar: https://www1.gotomeeting.com/register/269756217

ABOUT:

CoveredCalls.com, founded in 1997 to help investors generate income through selling covered calls, provides data, education, and live coaching to the self-directed trader. CoveredCalls.com is one of the first option education services to provide data for the new Weekly options. Weekly options are part of the premium “seatbelt investing(TM)” service, available at CoveredCalls.com.

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can i be the writer of a call option and a put option?

Question by Option: can i be the writer of a call option and a put option?
hi i have an account at charles schwab and i got approved to trade options at level 0, which means that i can do cover call/puts. i have a 100 shares of XYZ and i already sold a in the money call option at A price. my question is that can i also write a put option, a out of the money put option? so that way i can juice more money out of my shares.
with a level 0 option, i can only do covered call/puts, roll out and nothing else.

Best answer:

Answer by Mike
As shorting or “writing” of call options requires a significant margin requirement, it is not usually a strategy that beginner option traders with very small funds can execute. There are options trading brokers who requires a cash reserve of about $ 100,000 before you are allowed to write a single call option. Therefore, for beginner option traders who wants to profit from a downwards move in the underlying stock through options trading, buying a put option would be a lot easier.

http://www.optiontradingpedia.com/

Add your own answer in the comments!

I have a call option of SP $ 5.00 bought at 0.55 of Jan2011. Today the contract is trading at 0.15. I am worri?

Question by kaish: I have a call option of SP $ 5.00 bought at 0.55 of Jan2011. Today the contract is trading at 0.15. I am worri?
I have a call option of SP $ 5.00 bought at 0.55 of Jan2011. Today the contract is trading at 0.15. I am worried that if it becomes 0 in a few days, then is it a total loss?? Or can i buy at shares at 5 at expiry?
Please help

Best answer:

Answer by GanoRex
It won’t be a total loss til expiration – which is quite a bit away. Worst case scenerio is that you have your money tied up till either it becomes profitable, you are willing to take a loss, or it expires. I would be more worried if it expired in Jan 2010. you can always buy more at the lower price.

Besides, you should know all of this if you are trading in options.

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i have a questionn regarding option trading,can some1 help please?

Question by netchant168: i have a questionn regarding option trading,can some1 help please?
for example: if i buy a call option with strike price of $ 60 expired in sept 2008 for $ 4. the stock price currently is $ 30. Two days later, the price jumps to $ 48, and the price for my call now is worth $ 6. what should i do with the call option? can i sell it back to the writer and get the $ 2 proift even though it is out of the money?

Best answer:

Answer by Mark L
Assuming you bought your call option on the open market, you can always sell it at any time. The sale won’t necessarily be to the person you purchased it from (the call writer).

As for whether you should sell now, that’s a more difficult question. A $ 4 premium on a strike that was double the stock price seems very high to me for a 5 month option. But if the stock increased that much in 2 days, the volatility must be very high. You still have 5 months left before option expiration. You have to look at the characteristics of the underlying stock and its stock chart to see what the best course of action is. Some of these momentum stocks can run up (and down) hugely in a matter of days. Why did the stock go from $ 30 to $ 48? If it was due to a buyout at a price of $ 48, then you should sell the option as it is unlikely that a $ 60 buyout price will emerge.
Options are very risky and should only be used by people who know what they are doing.

Add your own answer in the comments!

Options Trading Strategies-Buying Puts and Calls on ETF’s

www.optionsource.net is an official provider of options trading education for the Montreal Exchange, Financial Institutions, Investment Dealers, Day Traders and Individuals who want to learn options trading like a professional.
Video Rating: 5 / 5

The basics on how to find a call option chain and understanding the details.
Video Rating: 4 / 5

ChoiceTrade Offers Equities and Options Trading at Rock-Bottom Commissions

ChoiceTrade Offers Equities and Options Trading at Rock-Bottom Commissions

EAST BRUNSWICK, NJ (PRWEB) February 13, 2004

Traders wonder why most brokers still charge such high commissions for equity and options trades. Meanwhile ChoiceTrade, a fast-growing online and direct-access brokerage firm, offers commissions at or below the lowest in the industry.

“In today’s trading environment, with the availability of cutting-edge technology and lower execution costs, there’s no reason why traders should pay more than they have to,” said Neville Golvala, CEO and founder of ChoiceTrade. “Because ChoiceTrade has been able to take advantage of economies of scale and cut its costs down to the bone, it can pass these savings on to its customers.”

ChoiceTrade stands out among the crowd by offering online equity trades at a flat $ 5 a trade, market or limit, any share size. ChoiceTrade also offers the lowest options commission anywhere at 99 cents a trade, with no minimum.

“But low commissions are not enough,” added Golvala. “Traders and investors also want fast, seamless executions, a choice of platforms and excellent customer service. And in all these categories, ChoiceTrade delivers.”

In addition to offering an online trading interface, complete with free, real-time streaming quotes, ChoiceTrade also offers additional platforms for direct access traders who want more control over their executions. ChoiceTrader Direct is a Java-based platform offering streaming Level 1.5 quotes. The company’s most advanced platform, ChoiceTrader Direct Pro, offers Level 2 quotes, advanced charting, basket trading and more.

“The choice is clear,” Golvala said. “As more and more customers are discovering everyday, ChoiceTrade is the obvious alternative to other so-called online discount brokers.”

About ChoiceTrade

ChoiceTrade offers low cost, cutting-edge, online and direct access trading of equity securities and options.

ChoiceTrade is a registered broker-dealer and member NASD and SIPC. For more information about ChoiceTrade, prospective clients should visit http://www.choicetrade.com or call (732) 214-2660.

Interested media should contact Ron Buckner at (732) 214-2660 or email rbuckner@choicetrade.com

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

More Call Option Trading Press Releases

Are there any risks whatsoever to a buyer of a long call or put option?

Question by skahhh: Are there any risks whatsoever to a buyer of a long call or put option?
I have been led to believe that the writer is the only one who would ever have to surrender shares of a stock in options trading, that the buyer only loses his investment of premium in the call or put at the most. Is this true?

Best answer:

Answer by Leo Enoch
Yes,the risk is the amount of money you put in to buy that option.

That is the risk you have to take. because the premium of the option will loses the value upon expiration of the option or when the stock is going in the direction against you.

Hope this help

Cheers
Leo

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Live Webinar To Discuss How Economic Turmoil From Capital Hill And News Events Like Greece Can Create Opportunities In The Stock Market

Live Webinar To Discuss How Economic Turmoil From Capital Hill And News Events Like Greece Can Create Opportunities In The Stock Market

Lehi, UT (PRWEB) September 26, 2011

Whether it’s Europe, jobs or natural disasters; the bad news just keeps coming. It’s time to come together again as traders and take a step back, and look at where the opportunities are in today’s stock market. Join Guy Adami, CNBC contributor, along with Greg Jensen, founder of OptionsANIMAL, as they break down the markets, “Live”. Guy and Greg will take a look at economic developments from around the globe and how they affect current market conditions.

This is a great opportunity to partake in the thought process of both an equity trader and option trader as they analyze fundamentals, dissect charts and then design strategies in real-time. This session aims to give you a “bird’s eye view” of what the professional trader is seeing in the market and how they may react to any opportunities or trends that are emerging. With so much uncertainty in the market due to the changes coming down the pipeline from Capitol Hill, this session will surely be one that should not be missed.

This webinar will focus on the following:

    Market turmoil of the past view months
    The best approach to the market in the 4th quarter
    Which stocks to trade in the current market conditions
    How news events like Greece affect the market
    Volatility created by uncertainty in the market

And the best part of the whole deal…it’s completely free!

Event Details:

        Date: September 27th, 2011
        Time: 11:00 am, CST
        Cost: Free

Register Online by clicking here.

About the Presenters:

Guy Adami is an analyst and contributor of optionMONSTER® content, including Covered Call Investor. Guy began his career at the famed investment bank Drexel Burnham Lambert trading energy and metals, before joining Goldman Sachs in 1996 to help lead up their US equities basic materials group. It was there that he worked for legendary names including Gary Cohn and current CEO Lloyd Blankfein. Mr. Adami is an original cast member of CNBC’s trading show Fast Money.

Founder and CEO of OptionsANIMAL, Greg Jensen, is an options investor, speaker, and author. His options trading book, “Spread Trading – An Introduction to Trading Options in Nine Simple Steps,” like his cutting edge and innovative education, focuses on giving investors the tools and knowledge to put the odds of success in their favor. Greg has trained thousands of people from all corners of the world to be successful in any market condition.

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©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Find More Call Option Trading Press Releases

How to Trade Options at the Right Strike Price CME Charting Analysis

www.StockMarketFunding.com How to Trade Options at the Right Strike Price CME Charting Analysis Which Option Strike Price Should I Trade? …. They are out of equilibrium and they do not instantly find the right price. THow Do Market Makers Pin A Stock Right At The Strike Price During Option … How Do I Handle A Losing Out Of The Money Option Trade That Has Lots Of Time? A call option gives the buyer the right to buy the underlying asset and a put …. The current market price of the underlying security,; the strike price of the …. The most common way to trade options is via standardized options. ust like call options, put options come in various strike prices depending … stock at a cheaper price to cover the short and exit the trade (strike price … Put options give you the right to sell something at a specific price Anyone can trade options in any of these options trading exchanges through any …. The buyer of a call option has the right, but not the obligation, … For example, if you buy a Call option on a stock with a strike price of [Options Trading]
Video Rating: 4 / 5