Option Trading: Waging War on the Market

Of all the opportunities for profit that can be had from the stock market, the one that is most often overlooked is option trading, which as its name implies, involves trading in stock options.These options allow a trader to profit from value changes to the option’s underlying stock by reserving the right to buy or sell it, but within a specific timeframe and before certain market conditions take effect and without a binding obligation.In effect, stock options reward you based on changes to the value of a stock even when it is a negative value. Read the rest of this entry »