Can You Day Trade Options ? The answer is, yes and no. First of all options fall into the day trading “Pattern trader” rules so you need to have $25,000 in your account to not trigger the day trading restrictions. (That is one of the reasons why many small investors use futures for day trading …
In the last post of this “Learning Options Trading” series, we discussed Options Trading Strategies that you could implement in your trading. The difficult thing is that there are lots of options strategies and it can be a little difficult to figure out how to actually get started. There are all kinds of stock and …
Many people new to options get a little overwhelmed by all the strategies and usually have a hard time trying to find the best options trading strategy. Honestly, there is no “Best” strategy but there are definitely specific strategies for different types of trading and usually the best suggestion is to start slow with the …
Options premium prices are derived using a mathematical pricing formula based on components calls “Options Greeks”. Fortunately you don’t have to understand the calculation but it is useful to understand what the various options Greeks are and how to interpret them. All brokerage platforms with options trading capability automatically calculate the Greeks for you. Therefore, …
Options can add a lot more possibilities to your investing. It can initially be confusing trying to figure out how to trade options with all the option strategies and understanding how options move relative to stocks. Here are the popular reasons why investors look at trading options : Options for leverage Leverage is usually the …
Many investors shy away from options because they sound intimidating with all the talk about options greeks(used to determine option pricing) and headlines like the majority of options expire worthless. Yes, it is true that many investors get into options with no idea what they are doing or how options work. Generally, new investors first …
