October 26, 2008
How to calculate options trading profit and loss?
Vineet Mago asked:
Example: (Hypothetical) I created a position on a stock or commodity options market, and have a position of (bought) 20 Call Options with strike price of 100 USD and I paid the premium of 10 USD. If the next day the premium fell to 8 USD and the underlying price fell to 95 USD, how much Loss/Gain did i make?
Example: (Hypothetical) I created a position on a stock or commodity options market, and have a position of (bought) 20 Call Options with strike price of 100 USD and I paid the premium of 10 USD. If the next day the premium fell to 8 USD and the underlying price fell to 95 USD, how much Loss/Gain did i make?
Filed under Investing by Administrator
October 16, 2008
When trading options, do you make more from exercising the options or selling them?
chief_clay77 asked:
Im still trying to get a better understanding in the options market before I actually start to involved. But I am still trying to find out what is better; exercising the options or selling them? Please explain why on both sides. Thank You.
Im still trying to get a better understanding in the options market before I actually start to involved. But I am still trying to find out what is better; exercising the options or selling them? Please explain why on both sides. Thank You.
Filed under Investing by Administrator
October 11, 2008
What’s your favorite options trading strategy, and why?
Bob W asked:
How do you usually play the options market? Selling naked puts? Covered calls? Buying deep in the money calls? Spreads? Straddles? What strategy are you the most comfortable - and successful - with, and why?
How do you usually play the options market? Selling naked puts? Covered calls? Buying deep in the money calls? Spreads? Straddles? What strategy are you the most comfortable - and successful - with, and why?
Filed under Investing by Administrator