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Options (Strategies (Several Small Trades (Max Risk per trade (2% of your…
Options
Strategies
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use up to 50%-70% of your assets, keep the rest as cash
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Steps
Volatility & Strategy: understand where implied volatility is on a particular stock and select the right strategy
If volatility is extremely high, you shouldn't be buying options, but selling them
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routine
2 times a day, morning & afternoon, once a week
Put
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A contract to exchange a stock at a "strike" price, by a predetermined date
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The seller
Has the obligation to buy the stock from the buyer at the strike price if the buyer exercises the option
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Call
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The seller
has the obligation to sell the stock to the buyer at the strike price if the buyer exercises the option
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the amount of gain (or loss) is marked to market (i.e. credited or debited) in the investor's account at the end of each trading day
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