The Covered Call is the most basic of income strategies, yet it is also highly effective and can be used by novices and experts alike. The concept is that in owning the stock, you then sell an Out of the...
Any successful trading program must take into account three important factors: price forecasting, timing, and money management. Pricing forecasting indicates which way a market is expected to trend. It is the crucial first step in the trading decision. The forecasting...
It is expressed through scale, reputation, competitive pricing and innovation that the Global Finance awards for the World’s best Derivatives Providers seek to highlight. Best Commodity Derivatives Provider: Morgan Stanley Morgan Stanley’s legendary commodities team harnesses over 350 professionals from...
Taxation of option transactions is no simple matter. Here we attempt to illustrate the basic principles. Profits and losses on options trading are treated as capital gains and losses. Therefore, options profits and losses are subject to all the regular...
Clearing house is an agency associated with an exchange, which guarantees all trades, thus assuring contract delivery and/or financial settlement. The clearinghouse becomes the buyer for every seller and the seller for every buyer. In the case of listed equity...
Every options trader needs to be familiar with the basic features of the market. So, we explore the action that takes place on the market floor and the ways in which traders away from the exchange can have their orders...
High volatility associated with stock-market bottoms offers options traders tremendous profit potential if the correct trading setups are deployed. Through a net options selling approach, there is a way around this problem. Here we’ll look at a simple strategy that...
The price of an options can be broken down into two parts: extrinsic value and intrinsic value. Intrinsic Value Intrinsic value is the portion of the option that can be realised if the option is exercised. Intrinsic value is the...