The Picture Of Profit - Equity Vs. Index Options
Equity Vs. Index Options
There is a great dealof confusion among novice options traders regarding the difference between equity options and index options. Despite many efforts to dispel it, the belief that equityand index options are separate animals that perform differently under identical conditions persists.
This misguided beliefhas caused untold grief for many first-time traders. However, the good news is that, despite differences in contractspecifications, at the end of the day acall is still a call...
Long Index Call
CLICK HERE to learn more about index call options.
Chart Note - B.E.P. = Break Even Point
Long Equity Call
CLICK HERE to learn more about equity call options.
Chart Note - B.E.P. = Break Even Point
Images courtesy of The Options Industry Council
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About Mark S. Longo
Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.
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