I’m a college student and recently I’ve been playing stock simulation games online. Hopefully I gather enough capital to trade in the real market within a few years from now. What I do on the simulation game is simply buying and selling company stocks. I noticed some people make a lot of profit from doing options trade. How does Options Trade work? How are Options Trade different from Stock Trading? Would you say it’s riskier investment method than stock?
I am still confused about option trading. I know when u r bullish about a stock, u can buy call option or sell put option.
Suppose I think that a price of a stock is going to rise in a month or two. having decide to buy a call which should I buy—— There r a number of 1 month calls trading with different STRIKE PRICE. At which price should I buy? What IS the maximum premium that I will give?
What is the maximum amount of stocks that I will buy in a lot? Suppose I buy at the lowest strike price what will be the premium?? What is deep in the money that trades at a higher premium What is out of the money that trades at a lower premium?
I have been trading stocks with Etrade for few years now. Recently I have applied for level 2 options with them, and I was denied. According to their Rep it is because I didn’t answer “correctly” their questions. Does anyone knows what kind of experience one should have and what should be the account objectives in order to qualify for the level 2. I’m aware of all the risk involve in trading options
Thank you.
I was wondering if it was a smart decision to buy options for the next month on the day before the current month expiration or after the month expiration. Basically I am asking if options trade a certain way before and after option expiration.
Here is an example of what i am asking, say I wish to buy Feb calls and it is Jan 16th, the day before the January calls expire, should I buy my Feb calls before or after Jan option expiration, do stocks follow some sort of general trading trend of expiration day?
P.S. I am intelligently aware of option trading I understand the risk and I have traded them before successfully. I was wondering if there was a general strategy for buying options close to a existing option expiration. I know the stock will do well, but I don’t want to buy just to see a dip on expiration day, therefore i ask if there is such a rule for this specific scenario.
I’m a beginner and looking to learn about day trading and option trading. I’m looking for a book that goes through the basics of day trading and option trading and gives me the base knowledge to begin trading and would provide a jumping off point so to speak by providing basic knowledge which would enable me to understand more advanced methods of day trading.
Can anyone recommend me a book, or more than one books that I should begin with? Much appreciated! Also if there are any professional day traders here that I could get in contact with to ask some questions about day trading for beginners or purpose get some short tips and lessons.
Thanks again.
1.OPTION VOLUME:
– As a Indicator,what DOES Option Volume says about future price Movements?
– What does High/Low Option volume says?
– When usually High/Low option volume occurs?Can u give some circumstances at which High/Low Option volume occurs?
2.Volatility:
a. IMPLIED VOLATILITY (IV):
—What does High/Low Implied Volatility (IV) reading says? Does it gives any signals?
—If “Yes” to the above question,Does that IV reading has any correlation with price of stock in order to Ensure that the
provided signals ( By IV) are not fake.
—At what circumstances Implied Volatility become unusual High/Low?Can you Give some circumstances?
—Does IV provides Buy and sell signal for option trading?Please explain in simple and clearly.
—Does IV provides the direction>?Like is it going to bullish or bearish or sideways?
b. HISTORICAL VOLATILITY (HV) AND IMPLIED VOLATILITY (IV) RELATIONS:
—Is there any rules like HV should be above or below IV ? or any RULES LIKE IV located above HV?
—If “YES” to the above question, what is the signal it provides when HV is located above IV (or)IV located above HV.
—Does crossovers of HV and IV provide any signals?
3.LIQUIDITY:
—Can You Tell Me Any Simple Strategy (Other than Volume) to measure the Liquidity of Stock option?
—I hear one friend saying:measuring liquidity from Bid/ask spread…..But his explanation is not making me
understanding….If you really know answer, Please explain to me in simple and clearly….
—does Liquidity provides Buy and sell signals? Please explain in simple and clear way.
4.Suggestions:
If you have your own experience of the following for the option trading,please explain to me in simple way.
—Forecasting the direction?Like Bullish or bearish or sideways?
—Entry and exit signals of option trading
Thank you .
I am interested to start an account in Singapore for Forex Trading. However, there are many things which I do not understand.
When I register an account with SaxoBank SG for example, I will make the necessary application procedures… But how do I actually transfer the real money to my account if I win money?
Does that mean that they will need my private bank account number? So that when I earn money from my Forex Trading Account, they can send my profits to me?
Another question: Besides Saxo Bank SG, which platform is reliable and safe for me to start my Singapore forex trading account?
I need help with the stock trading terms in order to learn how to trade stocks online. When I go to the website, there are five ways to order: ‘market’ (which I think means I buy and sell the stock at the market price), but what about ‘limit’, ‘stop limit’, ‘stop’, and ‘trailing stop’? And re: transactions, I can buy and sell, but what does it mean to ‘short’ and ‘cover’? (How are those different from buying and selling?) And for duration, there is ‘day’ and ‘GTC’–to what do these refer? Thanks for any help you can offer with the stock trading terminology.
Can someone give me just a basic rundown on how this works?
Question 1: Is this something you can start doing with little expense, or does this fall under ‘you have to have money to make money’?
Question 2: I’m not trying to get rich quick, but like many of us, my family is short on money right now. Internet jobs are pretty much all a scam, and the job market where I live is awful. I am just looking for a way to get extra cash from time to time and a friend mentioned ameritrade. Comparing stocks and mutual funds, are either something you can do to help pay the rent next month, or are they both long term multi year deals?
Yes, I know I sound desperate, but I figured it wouldn’t hurt to ask about something that can potentially help my family.
Thanks in advance for ANY help.
I know share trading, a little about options, other type I do not knows. I would like to know more about the available trading type. like forex trading, security? what are the paper trading methods available?