Thursday, December 19, 2024
You might think options trading requires you to commit to a decision about a stock up front: will the stock rise, or will it fall? But it is possible trade options even when you don’t know what direction the stock will ultimately move. A straddle is a way for you to you to play both […]
In fact, according to The Economist, in 2020 about 30 million equity options were trading every day—50% higher than 2019. And so far in 2021, notes the Option Clearing Corporation (OCC), options volume is up to 39.2 million a day. While simple call and put buying is popular, traders are also turning to covered calls, […]
New options traders ask, “what are option Greeks?” Option Greeks are different factors affecting options contract prices. Option Greeks include: Delta (Δ) tells us how much an option price will move for every $1 gain in stock Gamma (Γ) tells us how much the delta can increase every time the stock moves Theta (Θ) is […]
If you’re new to options, one of the key things to understand is the option chain. This is where you’ll find available options contracts for calls and puts for most stocks, as well as the strike prices and pricing information. As Robinhood explains it: An option chain is like a restaurant menu. It tells you […]
Before you jump into the deep end with options trading, there are a few key terms to understand. First, as we noted last week, an option is a contract (a call and a put) that gives you the right—but never the obligation—to buy or sell a stock at a set price over a set time […]
The opportunity for a higher return is why investors trade options on Robinhood. For example, if you were offered the choice between a 2% gain from a stock and a 71% gain from an option, which would you choose? Let me ask that another way: If you had an opportunity to make $20 on every […]
The opportunity for a higher return is why investors trade options on Robinhood. For example, if you were offered the choice between a 2% gain from a stock and a 71% gain from an option, which would you choose? Let me ask that another way: If you had an opportunity to make $20 on every […]
Some of the market’s most rewarding opportunities can be found in small-cap stocks. Just over the last few years, for example: Fate Therapeutics (FATE) soared from just $2.52 to $92 Digital Turbine (APPS) jumped from about $2 to $68 TG Therapeutics (TGTX) rocketed from a low of about $3.45 to $40 While we all wish […]
Investing in dividend stocks is a great way to grow your wealth. “Most dividends are cash dividends, which are cash payments made on a per-share basis to investors. For instance, if a company pays a dividend of 20 cents per share, an investor with 100 shares would receive $20 in cash. Stock dividends are a […]
Marathon Digital (MARA) pulled back as Bitcoin fell below $30,000. All thanks to China. According to CNN, “State media reported that the southwestern Chinese province of Sichuan ordered a halt to all crypto mining operations and cut off the power supply to many mining facilities. The province is a major hub for mining, the process […]
