Two basic trading strategies for Options – Speculation & Insurance/Hedging. Remember the characteristics of an option. Buying a call or put option contract over a stock, gives you the right to buy (call) or sell (put) 100 shares of the underlying stock, at a certain price, on or before a set date in the future. [...]
Seems with html 5 websockets I can now think of the browser as a unix terminal. Instead of serving out flat html files, I can serve out one small bit of javascript that builds the page synchronously & interacts with the user. All good for very fast dynamic web pages, and a great user experience. [...]
When you look at the premium for an option (how much it is trading at now), you should break the price up into two components. Intrinsic value and Time value. Intrinsic value is what the option would be worth if it had to be executed now. If the option is In The Money, then it [...]
A Futures contract requires delivery of an asset at a fixed price at a certain date in the future. The seller must make delivery and the buyer must take delivery of the asset. With an Options contract, the buyer has a choice whether or not to exercise the Option. The seller has the obligation to [...]