I’ve setup this website as some kind of“modular course” where you’ll find information about options trading and their strategies.
I’ve tried to make a sweep from the fundamental concept until some of the “most developed” doable strategies trading options as well as combinations of options and futures and/or stocks.
I’ve pretend to keep it as simple as possible having the readers in mind in order to achieve better comprehension. I’ve made this work without technical and fancy wordings and aiming to the practical side and application of the knowledge provided to the real markets; avoiding formulas within the frame of reason.
The idea is to demonstrate that using this derivative instruments; finance world is a cozy place where risk is controlled and measured.
Now.. .here is my 4 warnings.
- Financial Options are not bought or sold; they are negotiated. Building strategies with options could take several intents until we find the acceptable price within the window offered by our broker.
- Options trading is done by longer intervals of time than with futures and stocks. Options trading strategies are more calm and usually takes some months; which means they may have a speculative effect for some days, but this is not frequent.
- With financial options we can make almost exact previsions of the results of the investments at the expiration date.
- Versatility among options gives us the possibility of creating combined strategies between options, stocks and futures. We are dealing here with a very sharp tool by its own but not been excluding of other investments.