Positron Investments

Trading & Education in Options, Futures, Stocks, Forex
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    • Technical analysis basics
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    • Options basics
    • Options strategies
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    • Futures basics
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    • Forex basics
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Options basics

  • What is a call option
  • What is a put option
  • Option expiration
  • Option strike price
  • Option premium
  • Moneyness
  • Option buyer vs option writer
  • Options positions
  • American & European style options
  • Intrinsic value & time value
  • Volume & open interest
  • Options chain
  • Payoff & profit diagrams
  • How to interpret a payoff-profit diagram
  • Historical volatility
  • Options pricing
  • Implied volatility
  • Sensitivity factors (Greek letters)
  • Greek letters: Delta
  • Greek letters: Theta
  • Greek letters: Vega
  • Greek letters: Rho
  • Greek letters: Gamma
  • Position Greeks
  • Put-call parity
  • Trading options

Options basics

Options are unique financial instruments which are used for speculation, hedging (protection against risk) or arbitrage (riskless speculation). Options give the potential to perform winning trades even if the price of the underline asset remains unchanged. In order for someone to apply certain strategies a clear and sound understanding of basic concepts must have been acquired, otherwise he/she will be one step behind other market participants and the chance of winning will be minimized.

Under the menu tab ”options basics”  the reader can study basic concepts that must be fully grasped before attempting real trading in options. After the comprehension of the basic concepts the reader can continue with ”options strategies” menu tab that explains a number of options strategies which can be applied in different market conditions and charts.

Every strategy is accompanied with a trading example based on technical analysis rules in order for the reader to comprehend in which conditions the particular strategy is being used. We focus on the US market and particularly in stock options because of its liquidity, abundant information and maturity. However everything that is said can be applied in other liquid option markets irrelevantly of the underline asset (i.e. stocks or forex).

 

Links

  • Bloomberg.com
  • Capital.gr
  • chartmill.com
  • Finviz.com
  • Forexfactory.com
  • Freestockcharts.com
  • Yahoo Finance

Recent posts

  • Possible breakdown in Greek stock exchange
  • Application of a simple strategy in EUR/USD
  • S&P 500 runs out of fuel
  • Short term downtrend in Greek stock exchange
  • Possible upward movement in S&P 500

Blog categories

  • Day/swing trades
  • Economy/Politics
  • Trading signals
  • Trading strategies

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