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While options are normally associated with high risk, traders can turn to several basic option trading strategies that have limited risk. So even risk-averse traders can use options to enhance ...
The three strategies below can pose significant risk for traders who don’t know their way around the option market. While all legitimate strategies, they pose significant risk for the ...
An effective options trading strategy requires that you understand these various indicators so that you know how options prices will move in response to time, the price movement of the underlying ...
Options trading allows investors to limit their risk and leverage their capital, but it can also expose them to amplified losses. It's one of the most flexible trading styles because of the many...
Beginners, experts and everyone in between can enjoy big gains or suffer steep losses in options trading. Variables like strategy, risk and market behavior all play a role.
Traders perform conversions when options are relatively overpriced by purchasing stock and selling the equivalent options position. When the options are relatively underpriced, traders will do reverse conversions or reversals. In practice, actionable option arbitrage opportunities have decreased with the advent of automated trading strategies.
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