Useful information for novice traders in the US stock market. Reviews, articles and videos about the leading American stock exchanges
One important point to note. Let's now simulate the position from the previous lesson In any option analysis toolkit, we see two position profiles: 1. Expiration profile is that profile, which is depicted by the green line 2.
Risk / reward ratio As we already know, option buyers' risk is limited by the premium, but there is no potential profit. When buying a Call option, our profit is not limited in the event of an increase in the price of the underlying asset (futures)
The second distinguishing characteristic of options is the so-called multidimensionality or (applicable to futures-style options in Russia) three-dimensionality. When trading options, it is not enough to worry about the movement of the underlying asset and make decisions only based on the price chart of the underlying asset..
The first important difference between options is the non-linear nature of the instrument.. Most newbies, usually, come to the options market from the world of line instruments (stocks or futures). On these instruments, the size of the profit is equal to the size of the loss with the same increase or decrease in the price..
Prize (price) an option on the market consists of two components: 1. Intrinsic value of an option. This is the amount, which we will receive, if we are now expiring the option and close the position in the underlying asset at the current market price. Example. Futures on an ordinary share of Sberbank costs 14 000 rub. и Long Call 13 500 (Bonus = 830 rub.).
1. in money (ITM – in the money) For this option, its exercise allows you to either buy the asset cheaper, what is it on the market now, or sell it for more. Example: Futures on an ordinary share of Sberbank costs 14 000 rub. (100 Shares) – 120 Call (we have the right to buy shares at 120 rub.) And 160 Put (we have the right to sell shares at 160 rub.) 2. on money (ATM – at the money) The strike of this option is approximately equal to (closest) to the BA price. The so-called central strike (remember this concept, it will be used frequently). In this way, exercising this option does not give any advantage, because. the asset price on the market is approximately the same. 140 Call and 140 Put 3. out of money (OTM – out of the money) For this option, its execution is not profitable, because. does not allow you to buy an asset cheaper, what is it on the market now, nor sell it for more. In this case, it is easier to buy (sell) underlying asset in the market, than under the terms of the option. 160 Call and 120 Put Начинающие трейдеры очень часто неправильно думают, что если опцион ITM, then it is profitable, and if OTM is unprofitable. This is wrong. And here are two examples. Example 1. Let's admit, futures on an ordinary share of Sberbank costs 14 000 rub. …
LESSON 18. CLASSIFICATION OF OPTIONS DEPENDING ON STRIKE Read more
For the option buyer (has the right to): Close with a reverse trade in the order book (same term and strike) Expiry Option (when, if it is profitable to perform it) Example: Long Call 65 000 and Si (on futures on the US dollar rate – Russian ruble) (1 200 rub.); BA cost = 65 000 rub. Let's admit, across 2 weeks, BA increased up to 80 000 rub.
Trading on the news is difficult to attribute to any type of trading.. This is not a technical trading method. – most indicators simply “break” at the time of price surges, with which news releases abound (from English. ease” – release), various candlestick patterns and patterns also do not shine with accuracy, because. depending on the bank's decision, or the report of the state. quotation services may fly away to 50-100, and in some cases more, points, in a few seconds! Maybe, everyone who wants to make money on Forex at least once asked himself: “The couple walked in a minute more, than the previous week. There must be some way to make money from this?!”. We hasten to please you – there are several ways! Truth, not all of them are simple, absolutely everything needs attention (one wrong mouse movement, and you will become the owner of a bonus of two or three hundred gray hair) and the most important thing – on the news, most of all, an ordinary trader has to compete not only with other traders, but also with investment banks, hedge funds and other financial institutions, whose capabilities, to put it mildly, exceed the possibilities 99% Traders!
Hello! Wednesday is a time to talk about finance and investment., so there are posts on Wednesdays @long_term_investments.
In 2020-2021. the popularity of the topic of responsible investing has increased dramatically, or ESG. Thought about that, that investments should not only bring profit, and support ecology and social justice, entailed something, that ESG funds began to play a significant role in international capital trading floors.