Category: Option Trading
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This is how you trade Market Uncertainty
Valeant Pharmaceuticals Intl Inc (VRX) dropped over 50% on Tuesday trigerring billions in losses for Hedge funds including the famed investor Mr Bill Ackman of Pershing Square. Is there a way you could have profited while big funds lost billions? Straddle spread is one such strategy that can be used in such instances.
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How Option Prices are Affected by Dividends
Dividends usually bring smile on the faces of most investors except for some. Declaration of dividend by a company may upset a few people. Just ask an option trader holding a call option and you will know. Dividends have an adverse effect on call option prices. I assume you have some idea about options and must be…
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Which Is the Best Broker for Options Trading?
Evolution of Internet has revolutionized how brokering services work. Gone are the days when you needed to pay prohibitively expensive broking charges to be in-an-out of a trade and had no access to technology or analytics. If you are a self-directed investor, these days you have plenty of choices to choose from. Ms. Theresa W Carey…
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How To Calculate VIX Options Calendar Spreads Margin Requirement
The Volatility Index (VIX), also widely known as “The Fear Index” has been gaining lot of popularity especially after the recent financial crisis. These days almost every major asset class has its corresponding VIX, and in fact several countries have introduced VIX equivalent for their leading market indices. After several months of trading it personally…
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Protect Your Portfolio Before AAPL Falls Further
Apple (AAPL) closed below 50dma level again. Apple has pulled back almost $53 from the high since latest earning announcement. When a company announces earnings that almost doubled smashing even the most bullish expectations and the stock was already selling well below the average P/E ratio of the market, how can it continue to fall…