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Who can help me with options trading - if we have an American call 90 -T -83 with premium of 4 how you can exploit this and how much profit can be made?
Wiki User
∙ 14y ago
There are many ways to trade call options and many ways to make a profit with it. This versatility is what makes options trading the most versatile trading method in the world today.
For example, if you own the underlying stock and if the underlying stock is trading at $90 or lesser, you could actually write those call options as both a hedge as well as for residual income in a Covered Call.
If you do not own the underlying stock and you are of the opinion that the stock is going to make an explosive breakout of more than $4, then you could simply execute a Long Call by buying and holding those call options.
Alternatively, if you are of the opinion that the underlying stock is going to go down instead, you could write those call options and wait for it to expire as in a Naked Call Write.
There are more than 1 way to make money in options trading and a good background and education in options trading before trying anything is critical.
Wiki User
∙ 14y ago
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What is meant by binary trading?
"Binary Trading" = "Binary Options Trading""Binary trading" is most likely referring to binary options trading - a form of investing in which you are placing you money into an agreement that will yield you 1-of-2 outcomes, either that you loose the entire amount invested, or gain a substantial return of about 60% to 85% return. Why would anyone trade binary options?The binary options trading cycle is around 15 to 30 minutes so someone who doesn't know what they are doing can loose their money very quickly, and someone that understand it can ear a significant return over the period of a day. Why its called "binary"It is called "binary" because you have only two possible outcomes. Unlike regular investments where the amount the stock, currency or commodity goes up or down will determine how much of a profit you will earn, binary options offer the possibility of either loosing the full amount, or nearly doubling it, simply by knowing the trend of the market. Where can I learn more info on binary options trading?One good place to start is to read the Wikipedia links on the following topics: check out Wikipedia for Binary OptionsCheck out wikipedia for Black-ScholesOptionsClick dot com to see what a binary options trading website looks like.top-binaryoptions dot.com to check out a few binary options trading sites that are compared.
How does algorithmic trading work?
Algorithmic trading is the process of auto-trading using automatic systems. Computers can instantly trade automatically using specific algorithms in order to create an efficient trading structure.
What are some examples of financial fraud?
Fraudulent financial dealings, influence peddling and corruption in governments, brokers not maintaining proper records of customer trading, cheating customers of their trading profits, unauthorized transactions, insider trading, misuse of customer funds
What is algorithmic trading and is it a difficult job?
"Algorithmic trading is basically automated trading. It requires specialized skill sets unique to the finance and trade industries, in addition to the technical abilities necessary to execute (or learn to execute) the complicated internet protocols."
Binance Customer Service +1(808) 481 5300 Binance Phone number An option is a financial?
Binance Phone Number 1 (808) 481-5300 Binance Helpline Number? An option is a financial instrument that allows traders to buy or sell the underlying asset at a predetermined price, either before or at a certain date. Options can be based on a wide range of underlying assets, including stocks, commodities, indices, currencies, cryptocurrencies, or even another derivative product. The purpose of options trading is to hedge the risks on existing positions, or for speculation. Types of Options There are two basic types of options: call options and put options. Call options allow contract traders to buy the underlying asset while put options allow the contract owner to sell the underlying asset. A trader would buy a call option with the expectation that it will rise in value in the future. Conversely, a trader buys a put option with the expectation that the price of the underlying asset will decline in the future. Options are further categorized into American options and European options based on the dates on which the options may be exercised. American options allow traders to exercise the rights at any time before and including on the expiry date of the options whereas European options can only be exercised on the expiry date of the options.
Where can one find information on Trading Index Options?
Information on Trading Index Options can be found at eToro, eSignal, Index Options Authority, Options Trading Mastery and the Chicago Board Options Exchange. Actual quotes can be found at NASDAQ.
Is options trading something anyone can do?
Options trading is not for the meek. They are complex securities and the risks can be high. Do your homework if you are considering options trading for investments. There are many reliable online sites and advise for the beginner.
Who wrote ''Trading Options for Dummies''?
After doing some research on Google, the answer to the question who wrote "Trading Options for Dummies" is George Fontanills. The book gives you step by step advice on trading options.
What was the main reasons New York was established?
As a trading center to exploit the riches of the New World.
What is the relationship stock options and insider trading?
Stock options are options on stocks and is a form of Financial INSTRUMENT.Insider trading is trading conducted by company insiders such as directors and is a form of Trading METHOD.So, one is a thing and the other, a method. So there really isn't any relationship.
Is Share premium as capital or revenue reserve?
Share Premium is a Capital Reserve. They cannot pay dividends because share premium is a non trading activity.
Where can one perform online trading of options?
There are several webpages where one can perform trading of options. Most stocks and shares webpages offer this service, such as 'noble trading' or 'interactive brokers'.
What are the options for stock trading?
There are a wide variety of options available to an individual interested in stock trading. The available options are too numerous to be listed here, but detailed lists of such options can be found, for example, on the Scottrade website.
What is 'put' trading?
Put trading means trading put options. Put options are options that are derived from stocks and it allows you to always sell the stock at the strike price before expiration no matter what price the stock is in future. As such, put options are bought when you expect the underlying stock to go DOWN.
What is the definition of Options Trading Education?
Options Trading Education is meant to teach potential traders the basics of trading stocks, the different types of stock trades you can make and how to select individual stocks.
Where can one learn about paper trading options?
One can learn about paper trading options on many websites online. There are hundreds of forums online that teach beginners on how to perform this type of trading option.
Where can one engage in options trading?
One can engage in option trading on E*Trade.
