Plan Your Exit(s) Beforehand

This article is named Plan the Exit(s) Beforehand for the simple reason that there should always be more than one possible exit strategy for every single option trade that we make. Since the stock market on any given day could move in three possible directions (up, down, or sideways), we must have multiple exit strategies for our option trades…

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Did Someone Say Carry Trade?

We haven't discussed carry trades in quite a while, but this strategy may be coming back into vogue. Many assume that carry trades must include a short position in the Japanese Yen, but this is not the case; any currency that possesses low interest rates becomes a viable shorting candidate for this trading strategy…

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Exploring The Benefits of Listed FX Options – Part Two

FX Options, just like other exchange-traded options, gives investors financial control of an asset, but with limited risk. Investors can purchase calls (the right to buy the US dollar exchange rate), or puts (the right to sell the US dollar exchange rate) based on their views of the markets, creating a limited risk profile. Sellers can earn premiums, but with substantial (theoretically even unlimited) risk. If investors expected large potential moves in the FX marketplace, buying calls or puts might make sense.

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Reversed Dividends, Maximum Loss and Option Commissions

The goal of this article is to point out that it is of utmost importance to be familiar with the product on which we are trading options. At any given time we should be aware of many factors which come into play when trading options, such as earning releases, dividends, implied volatility, and also technical analysis which determines the proper timing for both entries and exits.

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