Stock Options Trading - Put And Call Options Value
If you take the 3 major stock exchanges in the USA,
that is the:
- New York Stock Exchange (NYSE)
- American Stock Exchange (AMEX)
- NASDAQ (North American.....)
There are about 10,000 companies listed on these 3
exchanges, of these approximately 3,000 have options
that you can buy and sell.
Put And Call Options
You should remember that there are ONLY 3 types of
options, Calls and Puts, but there are at least 26
options trading strategies that can be used, just
remember that these strategies all use a combination of
calls and puts, no matter how complicated the strategy
is.
Options Strategies
There are generally 2 types of trades that can used
with options, directional and non directional. With
directional you need to become a very good stock trader
1st or there is a very good chance you will lose all
your money sooner or later. This is because simple
directional trades using calls or puts are highly
leveraged and can loose their value quickly if you don't
time it right.
Non directional option strategies rely more on the
time decay parameter of options and don't rely on you
picking the direction of the trade, however you do need
to understand, and use good money management principals
in these trades or again you can lose a lot of money.
It really will pay you off in the long term to take
your time to learn about options and paper trade until
you are very confident that you can consistently make
money. The easiest way is to read a good selection of
trading books over a period of time, just one bad trade
will cost you much more than a whole bunch of trading
books. |
