Option trading has many advantages over other investment vehicles. Trading in option contracts can give an investor the flexibility to place bets on very specific market outcomes.

For example, an option trader can make a bet that in 6 months time a stock will be trading either above a certain price or below a lower price – an each way bet if you will! If the stock trades between these two prices in 6 months, the trader will lose a predetermined amount. This type of option strategy is known as a Long Straddle or could also be a Long Strangle.

Option contracts also provide traders with an enormous amount of leverage. So, with a relatively small amount of money an option trader can control a very large underlying stock position.

Option tips, particularly for those entering the exciting albeit complicated world of option trading, advise a comprehensive scrutinisation and study of option combination strategies.

A judicious blend of option combinations give you the ultimate flexibility with your investment decisions, increasing the chances for more successful ventures.

The Actionable Chart Setups for placing high-probability option trades and Portfolio Hedging, Sector Rotation and Mean Reversion are all helpful.  Other option tips include crucial information about the different types of options, like Index Options or FOREX/Currency Options. 

Generally, an Option Strategy involves the simultaneous purchase and/or sale of different option contracts, also known as an Option Combination.  There are such a wide variety of option strategies that use multiple legs as their structure, however, that even a one legged Long Call Option can be viewed as an option strategy.

To dabble in the stock market is an exciting venture, but backed by in-depth knowledge and guidance in the form of some useful stock tips, it can also prove to be an extremely profitable one!

Choose those stocks where there is huge volatility , which means look for stocks which are sensitive to the price volatility, thus the movement of up and down of a share price should be high , they should not be slow moving stocks and a regular momentum should be maintained every time!  The rate should be so high so that the intraday trading can take place and then only aggressive buying and selling will take place. 

Another one of relevant stock tips cautions that not only is the price volatility to be observed as there are many such stocks that may not have so much fluctuation in price, but they are traded in volumes, so an experienced investor can book profits on trading on large volumes at a small price thereby enabling  the profits to be averaged at the end of the session!

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