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Buy calls on dividend payers. Options price in a stock’s dividend payments, meaning that call options on dividend stocks are less expensive (and put options more expensive) than on non-dividend ...
A condor is a limited-risk, non-directional options trading strategy consisting of four options at four different strike prices. [1] [2] The buyer of a condor earns a profit if the underlying is between or near the inner two strikes at expiry, but has a limited loss if the underlying is near or outside the outer two strikes at expiry. [2]
Insider trading has a negative connotation for many Americans due to the idea that company management can buy or sell shares of stock before important information about a company goes public. But ...
The trader may also forecast how high the stock price may go and the time frame in which the rally may occur in order to select the optimum trading strategy for buying a bullish option. The most bullish of options trading strategies, used by most options traders, is simply buying a call option. The market is always moving.
A trader who expects a stock's price to increase can buy a call option to purchase the stock at a fixed price (strike price) at a later date, rather than purchase the stock outright. The cash outlay on the option is the premium. The trader would have no obligation to buy the stock, but only has the right to do so on or before the expiration date.
Large institutional investors, such as mutual funds, pension funds, insurance companies, hedge funds, endowments and other investment firms, are often considered to be the “smart money” on ...
The insider investment strategy is an investment strategy that follows the buying and selling decisions of so-called "insiders" in a stock market.The primary insiders have an advantage because they have access to more information about issues that could affect the current and future value of stock, which is known as an "information advantage."
Options are a short-term vehicle whose price depends on the price of the underlying stock, so the option is a derivative of the stock. If the stock moves unfavorably in the short term, it can ...