Trade in Groups

Binary options are good for beginners that want to get their feet wet, without worrying too much about all the jargon used in trading stocks. With binary options you either win or lose – there is no in between. The basic concept is that you buy a contract, either in the buy or sell mode […]

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Binary options (see: “Understanding Fixed Return Options (FROs)” offer traders another way to make leveraged bets on equities. While the total number of stocks and indices on which FROs are available is still relatively small due to FROs only being available for a handful of months, I see several trade set-ups:
After hitting an intra-week low […]

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Binary options, also known as digital options or all-or-nothing options, are contracts which have only two possible outcomes - either they win, or they lose. Essentially, a binary option involves a fixed payout after the underlying stock meets or exceeds its predetermined threshold or strike price. Values of binary options payouts are determined […]

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A binary option is an all-or-nothing contract. The prefix “bi” denotes two possible outcomes for the investor. Other common names for binaries include fixed return options (FRO), all-or-nothing options and digital options for their on-off payment structure. Binary options are a new investment vehicle to hit the American Stock Exchange (AMEX). The contract calls for […]

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It’s a race to the white house and McCain and Obama are hoping for your vote. But how will the candidates’ plans hit your bank account? Here are five ways Obama’s economic plan could impact the average American.
Tax Stimulus
Overall, the Obama tax stimulus plan calls for $20 billion to be distributed, but at $300 per […]

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In the financial world, the term ‘Volatility’ refers to the measurement of the fluctuation in prices over a certain period of time.

Volatility is often used to quantify the risk of an investment, and the value of volatility is expressed in either of two ways: one as a definitive monetary value and the other as a […]

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May you live in interesting times.
-Ancient Chinese Curse
Stress in the financial markets has been spilling over into other areas, affecting equities, derivatives, and a wide array fixed income products. Because of their multiple uses and leveraged nature, the equity derivatives market is an especially interesting point of study, because the behavior of numerous speculators and […]

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Phrases most commonly associated with volatility are: degree of unpredictability; extent of uncertainty; range of values within a specific time period.
Volatility refers to the change in value of a financial instrument within a time horizon. It is considered by investors as an important measure of risk when assessing a financial instrument. […]

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Volatility as defined is rapid change such as volatile chemicals that are explosive. When it comes to the stock market, volatility is in fact pretty much the same. Various methods and measures are used to track the volatility of stocks and their likelihood of moving up or down in price instead of looking at the […]

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As an options trader, implied volatility and time decay are two critical components to keep an eye on. This article will focus on volatility for those just beginning to dabble in options. At the end of the article a short explanation of time decay is included.
Markets determine option buy points by using forward-looking pricing models. […]

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