Options Trading

December 14, 2011

Options Trading Question?

Mike asked:


Im finally getting into the Options market … I dare say I am ready to play with the big boys …. Anyway as get into the heavy research with it sure betas and alphas are easy, but what about the Deltas? Gammas? Thetas? and Vega’s? Can anyone explain these to me? Thanks

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December 8, 2011

Stock market trading beginner 2 very stupid questions?Please help?

kalns asked:


I start online trading on online virtual simulation platform to practice options trading. But there is a “20-min” delay which keeps annoying me.
My questions:
1. So that means i am not trading at the price when i click the “confirm” button? E.g. I want to buy apple.inc at $100 at 10am so i click “confirm”, but the trade is delayed to 10.20am when apple inc has soared to $200, so i am trading at $200 which is way more expensive to me??????????
2. What does the word “position” means? I buy a share so i have 1 position???I sell that share so i lost that position????

Thank you so much and forgive me asking such stupid questions.

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October 24, 2011

Trading stock options?

palmerinkid asked:


Are you trading stock options? Just buying puts and calls or more advanced strategies?

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October 13, 2011

Trading Futures contracts, the logistics?

Danny asked:


When selling a futures contract, is the process like selling an options contract? For example, when selling a futures contract, is the seller also the writer? Or are there no writer since in the exchange, everything is standardized?
So if that’s the case, can I just decide to sell any amount of contracts as I please? And as a buyer, are there premiums that must be paid? Are Futures like…more intense/volatile versions of Options (a stretch)?

I know that unlike options and stocks, the settlement is at the end of each day, so therefore, you realize your losses and gains daily, but does that mean that your “account” is debited and credited with the dollars lost and gained?

For options, there are no losses in writing a contract, so is that the same for futures? If I sell a futures contract, and no one bites, does nothing happen?

I think I have a decent understanding of Futures, as a derivative, but the logistics in trading seems considerably less straight forward than Options trading. Also, what’s the difference between the exchange and the clearinghouse? One is the platform to trade on, sort of like Ebay, while the other is…to protect the traders,…so (a stretch) but SOORRTT of like Paypal (more so for the seller)?? But then do they work together outside of the traders knowledge? As in, do I buy futures from the exchange? or from the clearinghouse? Or is the clearinghouse within the exchange?

Thanks everyone in advance. This is for a futures class, and the concept is so foreign. Thanks again!!
One more thing! I understand this is all REALLY mostly risk trading, and the commodities dealt with are rarely..dealt with. But, at the end of the day, where do the commodities go? For example, a futures option on corn that’s due to expire a year from now. I buy it…sell it, someone buys it…sells it, and as it gets closer to the exp date, for the farmer who put it on the market in the first place (or…do they do that?) what does HE do with the commodity? Or if not the farmer, for WHOever has the ACTUAL commodity, what happens to the it?

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September 5, 2011

Is there a site where I can learn about investing? Im a newbie?

VKY asked:


What are bonds, penny stocks, warrants, equities, blue chips, unit trusts, futures, options trading etc… etc. Which is the best type of investment ?Are there books explained clearly in details which is easy for one to understand?

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August 13, 2011

For how many years can you carry over a net stock/options loss to offset any future gains in future years?

James007 asked:


For example if I lost $10,000 in stocks/options trading in 2006, for how long can I use that loss to deduct it from future tax years. Is there a limitations in the number of years to deduct that loss? If I finally make a capital gains (stock/options) of $10,000 in 2015, can I then deduct that loss from 2006.

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August 7, 2011

Volatility and Implied volatility (Options Trading)?

omgomgstoplookingatme asked:


What’s the difference?

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June 21, 2011

new to options trading?

TheStreetTrader asked:


i have a vitual account about a month or so ago i bought 20K of the eur/usd bought at 142.72 now its 146.27… it says i used only 50$ margin and have a profit of 709$$ im not really sure what this means did i only risk 50$ and made 700$??

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June 18, 2011

What Stocks, Options, etc. Are You Trading?

Mike asked:


All I’m in is Wal-Mart right now. I’ve sold everything else with nice returns and just have $ sitting on the side. Crazy market!

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May 4, 2011

Options Trading OPTIONS TRADING?

wirelessforless2000 asked:


Whoever gives me the most DETAIL will get the 10 points!

What do the following mean:
Buy to Open
Buy to Close
Sell to Open
Sell to Close

Im trying to buy calls, once I buy them how do I make money on them? How do I sell them exactly?
When buying calls is it true the most you can lose is the amount you invested?
Also, on the screen I see some stocks that say Calls [55] and other stocks that say Calls [45] at the top of the screen, its not the price so what does it mean?
When buying calls under quantity if I put 1 does that mean im buying 100 shares?

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