Options Trading Journal – A Closer Look

Call and put options deliver large leverage to the holder who can play either edge of the fence. The call option gives the holder the right to purchase the underlying asset whereas the put option allows the holder to sell the underlying asset. Many good books about Wall Street stock option trading are available in bookstores or even available free from your agent.

Exercising the option at the right time if the market moves in your favor, determines if you win or lose. If, for instance, the underlying asset expires worthless, you only lose your protracted option price.


The theoretical usefulness of a stock option can be assessed according to several statistical models. These models, which are developed by quantitative analysts and attempt to predict how the worth of the option will change in reaction to changing conditions. Because of these proven models, the risks associated with granting, owning, or trading options may be quantified and managed with a high precision.

Another technical glitch hits the Stree t… Today the Chicago Board Options Exchange (CBOE), the largest U.S. options exchange, wasn’t able to start trading until mid-day. According to the Wall Street Journal, the CBOE blamed the delay on software problems. As a result, people weren’t able to trade options on the S&P 500 and the CBOE Volatility Index (VIX), the WSJ pointed out. There was a three-and-a-half hour delay in trading. Just before 1 p.m. EDT, CBOE SPX products had opened …

Exchange-traded options form an important class of options which have standardized contract features and are traded on public exchanges. The low-cost leverage feature that options provide make them an extremely attractive financial instrument.

Various financial indicators can used to gage technical market direction. Instead, find the ones that work best for you and your strategic style, and learn to master them. Relying on news sources such as the Wallstreet Journal, option stock trading services are very helpful. Most successful financial experts felt that the best trading systems are the simplest ones.

You shouldn’t expect to set up a completely new and novel approach to foreign exchange trading. Experts in the financial world have been learning the ins and outs of forex in order to master the market for decades. Inventing your own strategies with no experience and hitting it big isn’t the norm when it came to trading in the Forex market. Find your own trading style but make sure it is founded upon researching and learning established trading methods.

As a trade market beginner, avoid trading against the trends. You should also never consider picking highs and lows that are contrary to the market. Relax, and ride the trends to higher profits. Trying to trade against the market trends is very difficult and may result in your loss ratio to increase substantially.

The stock market, in fact all markets, behave in wave-like oscillations over time. It is important to assess the direction of the wave before you take a position. If a stock is going through a strong upward long-term trend, but the present short-term trend is downward, leading an lagging technical indicators help signal entry and exit points for your trade.

Oscillators are useful indicators for market direction. Momentum indicators, although lagging in their construction, are helpful when combined with oscillators. You want to catch a trend early and not enter it when the large gains have already passed by.