Options Trading Tutorial

www.optionsuniversity.com CNBC Business News with guest Ron Ianieri, Chief Options Strategist at Options University, Oct 9th, 2008, Live from New York, NY Part 2 http

RBA May Cut Rates As Retail Sales Dip In response to the worse-than-expected 1.1% fall in Australia’s September retail sales, the RBA is likely to cut interest rates by 50 bps to 5.5% on Tuesday, says John Noonan, senior FX analyst at Thomson Reuters. He tells Ron Ianieri from the Options University & CNBC’s Martin Soong more.

advanced options trading strategies

Bullish on the Aussie Dollar Ron Ianieri, chief markets strategist at the Options University is medium- to long-term bullish on the Aussie dollar against the greenback. He explains his upbeat outlook to CNBC’s Martin Soong.

www.optionsuniversity.com CNBC Business News with guest Ron Ianieri, Chief Options Strategist at Options University, Oct 21th, 2008, Live from Singapore Part 1 of 6 http

Options trading is one of those things that we hear a lot about but most people don’t get into it because they aren’t sure how to get started. Anything to do with stocks and trading tends to scare people off. However, if you are interested in making some money, this is a good way to do it and you can ease into things so you aren’t going to lose thousands of money if you mess up. Step One The first step in options trading is to learn. Read everything you can and educated yourself before you even start looking at options. There’s a lot of information available online, so spend a week or two just learning as much as you can. This will ensure that you get the basics down. You need to understand how options trading works in theory before you jump in or you will lose a lot of money. In addition to articles, you’ll find that there are videos and sample trades available, too. Study these to see exactly how it’s done and then familiarize yourself with the trading sites so you will know where to go and what to do when you’re ready. Step Two Now that you have a good book knowledge of how things work, it’s time to sit down and test the waters. Pick something simple and make your first trade. As soon as you start to apply the things you’ve learned from reading and watching videos, it will make a lot more sense. If you’re very cautious, you might want to subscribe to someone who is successful and follow their advice on which options to choose and which type of trade to begin with. There are people who happily share their tips and can give you a little help getting started. Step Three Once you have the basics down, you can move on to slightly more advanced techniques. Keep in mind that most of these are also riskier, so be careful. If you don’t have a lot of money to burn, consider keeping most of it in a more secure option and then using just 10-15% for your riskier endeavors. Anything you earn from this can then be turned around and reinvested. After you’ve started trading more regularly, it’s more a question of experience. You can read all you want and pick up new techniques and methods, but the truth is that your best methods will come from experience and experimenting. What works well for someone else might not be so great for you. It really depends on the person, so don’t feel bad if one method isn’t suited to you. Step Four Rinse and repeat. Now that you have experience under your belt, you can repeat your successes. Keep a record of all your trades so you can learn from them. You should stay on top of the news in options trading and continue to learn as you go. There’s always more information out there, but as you get better at trading options, you’ll find that it’s harder to find new information. Many traders enjoy hanging out on forums and sharing tips and ideas and successes with others. There could be quite a few tips that you can pick out there, not to mention making some great contacts. This works for beginners, as well, since there are a lot of people more than willing to answer questions and offer a little help to those new to the trading arena. Options trading can be quite rewarding, though it does carry risks. Take the time to learn what you need to first and then go ahead and test the waters. With repeated practice and testing, you’ll eventually come up with a strategy that works best for you. Then it’s just a matter of repeating it.

Options On Stock Indices And Currencies

Currency trading has become the biggest investment market in the world economy. It has exploded in popularity with the internet, making it possible for anyone to trade currencies. Most people think of the Forex market when currencies are the asset being traded. The truth is that currency options trading is also a large part of the currency market. Similar to stock options, currency options trading gives you the right to sell a particular currency within the option timeframe. This is usually a month. Now, a new option has been introduced (new to the U.S.) called the binary option. In currency options trading, the binary option offers a unique opportunity.

Since May of 2008, binary options have been available to the public in the U.S. They are offered in stocks, commodities, indices, and currencies. Currency options trading with binary options is a great new way to profit. Unlike Conventional Forex trading, binary options offer a guaranteed profit percentage if they expire in the money. This means you know exactly what you stand to gain or lose before you make the investment. Offering 65-81% profit in as little as an hour is also great. With the more basic knowledge of how a currency is trending in the short term, you will receive the same profits regardless of the magnitude of the change in value. As long as you are correct in your evaluation of the currency you will profit. Simply purchase a “call” option if the currency will rise, or a “put” option if it will fall in value. Options On Stock Indices And Currencies

Of course you must do the proper research as with any investment. currency options trading with binary options simply makes it a little easier. No longer do you have to evaluate the magnitude of what a currency might do. You don’t need to ponder the likelihood of how much you need the currency to rise in order to turn a respectable profit. Simply discern which way a currency is headed within an hour, or day and you can invest as little, or much as you want (most online brokers have a minimum of $30 and a maximum of $3000). If you are correct, you’ll get your 65-81% profit. Nothing could be simpler. Of course, the potential losses with currency options trading through binary options is quite steep. In most cases you will walk away with nothing if it expires out of the money, but in some cases (depending on the broker) 15% of your original investment is returned.

If you have been enticed by the potential of currency options trading, but looking for simplicity, and larger profits, look no further than binary options. With the right research, and the proper call, or put, you can turn a sizable profit in a very short amount of time. Options On Stock Indices And Currencies

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www.optionsuniversity.com CNBC Business News with guest Ron Ianieri, Chief Options Strategist at Options University, August 7th, 2008, Live from Hong Kong, China. Part 5 of 5 http

Best Stock Options Book

There are many advantages to trading stock options when compared with regular stock trading and investing. Like any type of investing, it is essential to have a good amount of knowledge about the type of investment before taking the plunge. Here are some tips for beginning stock options trading:

Research

If you are starting with little knowledge about stock options, it is especially important to do your research first. Get a book or attend some seminars. It can be complicated and has many different types of trading, buying and selling available. Know what type of options you want to try your hand in and do you best to research that specific area. You need to know terms like calls, puts, long call, short call, long put, short put, long synthetic, short synthetic, call backspread, put backspread, call bull spread, put bull spread, covered call, protective put, collar, call bear spread, put bear spread, long straddle, short straddle, short strangle, long strangle, long guts, short guts, call time spread, put time spread, call ration vertical, put ration vertical, long call butterfly, short call butterfly, long put butterfly, short put butterfly, long condor and short condor, among others. If this sounds like a lot, it is, and you should at least know the basics of what these terms mean.

Stay on Top

Don’t forget to tap into the vast resources of the Internet and subscribe to the many stock options trading newsletters, join forums and stay on top of options trading news. Make it a daily habit to read up on what’s going on in the market. Best Stock Options Book

Courses & Tutorials

One of the best ways to start your foray into trading is to get yourself a course, system or take advantage of some tutorials. There are many basic tutorials available for free online that will give you the basics of stock options and trading with them. Many tutorials even have videos, examples and other interactive elements which can be very valuable to someone who is new to trading with stock options. There’s also numerous courses that are available online and offline, many include electronic books, memberships, forums, videos, DVD’s, audio files, spreadsheets and other materials. A course that is designed to teach you how to trade can be very valuable to a newbie to options trading.

Software

Finally, there are numerous options when it comes to options trading software. These software packages and systems can help you simulate and analyze scenarios and can be valuable tools in your stock options trading arsenal. Best Stock Options Book

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Stock Market Analysis, Investment, Options and Candlesticks and so much more, begins Options University’s 2nd Annual Investor’s Superconference