What Is Options Trading?

ByCarson Koziol

Options trading was born in 1973. That's when the options market became an active market place. It has since evolved into a sophisticated trading vehicle. As you might guess, numerous market advisors and investors have created what are called options trading strategies.

You obviously can't have strategies without the trading. They are hand in glove. But the question still remains,

In its most basic form, options trading is paying for the right to buy or sell stocks or futures at a particular price over a given time, or selling the right to someone else to buy or sell stocks or futures for a particular price over a given time.

Notice the word "right" in the above paragraph. Options grant rights not obligations. In other words you have the right to buy the stock, let's say, should you buy a call and the stock price moves in your favor. Or, if you buy a put, you can sell the stock if it too moves in your favor.

You are under NO obligation to act. You can let the call or put just mentioned expire should you so elect. This is different than buying the underlying stock outright. Once you buy it, you own it. It sounds funny to say you are obligated to own it once you buy it. But that is exactly the state you are in.

By inference then, option trading offers the trader advantages. This article won't discuss the tax advantages or other implications as they are beyond its scope.

However, the actual trading is not beyond its scope. Hopefully before anyone enters into the options realm they are equipped with basic, at minimum, knowledge of this critter called options. The investor must know the difference between a call and a put and a buyer and seller.

If this sounds like a foreign tongue speaking, please do your homework first and trade later. You will save yourself a small fortune. You don't want to pay for knowledge you can get for free.

Options trading is like stock trading. You can buy or you can sell. Calls were created for the person who wants to buy a stock. Puts were created for the person who wants to sell a stock. Mind you, stocks are not the only securities which offer options.

The others are also beyond the scope of this article. Do a little research in your favorite search engine and you will find all the securities that are optionable.

Thanks to the Internet, online options trading is now a reality. All a person needs is a computer, be an approved option trader through his broker and he can trade options via his broker's website. Life as options trader couldn't be easier.

So what is trading options? It is trading an investment vehicle that offers the potential to make money, hedge a portfolio and, in general, provide insurance the stocks or bonds in someone's account. Therefore, it becomes another way to play the market.

Trading options doesn't have to be a game of market watching anymore. The traders over at The Best Trading Info have a very good success rate and proven reliability. Over twenty years of making successful options trades. You can benefit from their knowledge and start making money trading options too. Why shouldn't their hard work pay off for you? The Best Trading Info wants their success to be your success too. Go find out how easy trading options can actually be for you.

http://thebesttradinginfo.com/

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How To Profit With Options Trading Strategies

ByCarson Koziol

Stock options trading has been available for almost 40 years. Traders have developed an understanding of options trading which have produced options trading strategies.

This may sound like talking in circles but think about it. Without the ability to trade in a particular security there can be no strategies. It is strategies that produce profits and by default losses.

This article does not talk about losses as the author believes losses speak for themselves. On the other hand, profits can be elusive and must be guarded with a vengeance. Hence this particular profit guarding strategy.

It happens all too often a trader is in a very good profit position but lets it slip away due to inattention or belief it will go higher or some other rationale. This strategy will prevent that from happening.

This strategy is also applicable to online options trading. After all, a profit is a profit no matter where generated. In the options world, a profit can happen in a matter of minutes so it is best to protect it.

Stock traders have been using this strategy for years. It has paid off handsomely.

You put a trailing stop-loss on the underlying security. Traders use different percentages for their stop-loss point. Probably the most common number is 5% because it keeps a high percentage of the profit intact. Anything higher could drastically cut into the hard earned gain.

Math wise it looks like this using a $50 stock price. 5% of $50 is $2.50. Therefore your stop-loss number would be $47.50 (50 - 2.50). If the stock price slides to $47.50, you would execute your trade and exit your position with profit in hand.

By no means is this a hard and fast rule because there are times when a tighter stop-loss is appropriate. Your options trading system should tell you what is and what isn't appropriate for each particular trade. That is why you have your system in place.

Remember, you are dealing with options. When the market turns against your position, all of your profits plus some or all of your capital can evaporate quickly. You have to act fast and not be hesitant to pull the trigger.

You never go broke making money. You want to profit with options trading strategies. That is why you implement them in the first place. Pay attention to your strategy, watch the market and take action. This should make you money in the long run.

Options trading no longer has to be a losing affair. What would you say if I told you two professional, highly experienced, successful traders would tell you to buy and sell the same options when they do? Well it's not a dream and I'm not pulling your leg. Start making successful options trades today. True story.

http://thebesttradinginfo.com/

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How to Determine the Value of Antique Silver Pieces

Having collected antique silver for over 15 years, I have found that antique silver is much like any other commodity in terms of value. Something is only worth what someone is prepared to pay for it. Hallmarks and condition play a great part in the valuation but the process involved to determine a value, prior to placing an item up for sale, requires research and can be time consuming. In this article you will find some practical advice to help you determine the value of antique silver pieces.

Antique Silver Written Valuations

If you need a written valuation for an antique silver piece, this can be obtained either from a professional antique valuer, an expert appraiser or in some cases from a jeweller but no matter the value they may place on your item the true value will only be determined when you come to sell it. Normally a valuation for insurance purposes is always higher than the actual value because the chance of replacing such an item could prove difficult.

Auctions and Auctioneer Sale Guide Prices

If you have ever attended an auction and seen something that you want to buy, the auctioneer may have provided a sale guide price which is the price the auctioneer believes the item will sell for, based on his or an expert's appraisal. The budgets of the buyers will effectively set the price at which a piece of antique silver or any other item is sold. If the piece is, for example, an unusual William IV silver comport dated 1834 and made by Robert Hennell and you are an avid collector of this silversmith's work, it may well be that you would be prepared to pay more than the guide price or exceed your budget. This does happen at auction occasionally but only if the right buyers are in the room or bidding over the internet. You should check with the auctioneer, as to his expected attendance levels and where he has targeted his advertising for the auction if you intend to sell an item at auction. If there are lots of buyers likely to attend that are looking for porcelain you should consider waiting for an auction that features mainly antique silver. When placing a reserve on your item make sure that you allow for the commission that the auctioneer will charge.

Comparing Prices

Searching for the exact antique silver piece that you own on the internet is a good start in attempting to establish how much the item is worth. For example, if you own a Charles III silver sauce boat, you will need to look up the hallmark to find out when it was made and by which silversmith. There are several reference books and websites available where you can look up hallmarks. When you have established the year your item was made and by whom, you can then begin searching the internet for comparable pieces. You may find several or just a few and they will possibly vary in price considerably depending on who is selling. A private collector may value his antique silver more highly than a dealer or lower, but if you make a note of all the prices you can calculate an average. Naturally you will have to take into consideration the condition of your item against those that you find advertised for sale.

Rare and unusual pieces of antique silver may be difficult to find and it is conceivable that you may own a unique item, in which case you will need to find an expert valuer. Rather than seeking a general antique silver appraisal expert you should look for one that has specific knowledge of the period in which your item was made such as the Georgian, Victorian and Edwardian silver periods.

Research is the key to getting a fair and reasonable price for antique silver and doing your own can pay dividends in establishing a true market value if you seriously want to sell.

Bernard Warner has acquired an impressive collection of antique silver over many years and has become a renowned collector of Georgian silver spanning the reigns of George I, George II and George III. Part of his enormous collection is now for sale including some pieces from the Queen Anne, William IV, Victorian and Edwardian periods. Some pieces date back to 1711. His website at www.warnersantiquesilver.com is well worth a visit whether you are a collector, investor or just looking for a very special gift.

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The Fourth Law of Money: You Need Help From Other People

It's a myth: Wealthy people don't become successful alone. They get help from other people. The secret is, if you attempt to do everything yourself you'll fail. If you use other people, you'll succeed.

Let's say you want to develop an investment property. The idea is to lease it out for the rental income. The D.I.Y'er will attempt to do everything.

They'd probably learn how to design the property by taking a course in architecture. They'd learn how to zone land and construct buildings. They'd educate themselves on financing, tax, property management and tenant administration. They'll try and absorb all the million and one other details required to get the property built and leased.

How would a wealth creator tackle the job?

The goal is to get the job done correctly and on time. So this person is likely to assemble a team of individuals who know what they are doing. You'd find a qualified architect to draw up the plans, a builder, developer, financier, property manager and other experts as and when needed.

Successful people come up with the idea. They are the visionaries. As an initiator of a wealth creation business, you are directly responsible for doing the research, finding a profitable market and making sure there is a big enough opportunity to turn the idea into a viable business.

When it comes to bringing the idea to life, your task is to recruit others to help you achieve your personal dream.

One of the most common reasons why businesses fail is that entrepreneurs try and do everything themselves. They hoard control and retain power. Delegation doesn't happen.

This is not to say that you must steer clear of self-employment as a business model. There are some highly successful sole-proprietors out there. However, you often find that a one-man/woman business plateaus very quickly.

Growth is limited. A business that solicits the help of other people and builds strong teams will usually have an edge over their competitors. As Robert Shemin said, 'The rich idiot makes the spark; other people make the blaze'.

This brings us to how to use other people to accelerate your success. There are three ways:

1. Use other peoples' time

These individuals give their own time to assist you in your business. They do the things that they do best, leaving you with more time to do the things that you do best.

When it comes to my property business, I have property experts in my team that manages all my tenant-related issues. They pay the bills, deal with maintenance issues and handle all my tenants' gripes.

As a result, I have more time to focus on growing my portfolio, i.e. buying property. Learn to use other peoples' time. It's powerful stuff!

2. Use other peoples' money

Pop quiz: What's the quickest way to make $1 million? Borrow it! Asking for money is not the easiest thing to do, but it's the quickest way to buy assets and build wealth.

There are two important criteria though:

You have to finance great deals so that you can make a profit. Your business return must be significantly higher than the interest rate you pay on the loan.Don't lose other peoples' money. It's a lot costlier than losing your own. If you do, you may never be able to borrow money from a bank again. Be careful.

When it comes to real estate, banks are willing to grant mortgages. But it has been tough of late (due to the 2008 credit crisis) to convince financial institutions to loan their money.

This is why you have to be professional when asking for money. Always speak to the man or woman in charge. Show them your business proposal and indicate how they will benefit financially from your venture. It's a strategy I've used to great success.

In addition, keep your options open. There are other people aside from banks that will finance your business, as long as there is benefit for them. For example, venture capitalists, successful business owners, investors, other professionals and even your friends and family may offer finance. All you have to do is look for them.

3. Use other peoples' experience

A personal mentor for me is by far one of the most important members to have on your team. A mentor is someone who is accomplished in your field of interest.

They can share their personal experiences with you and in so doing increase your chances of success. More importantly, they are there for inspiration. Entrepreneurship is daunting and can at times be de-motivating. You need somebody to help lift your spirits when the time calls for it.

So don't be shy. Find a mentor in your field. Speak to them. Ask them for help. Show them that you are committed to making a change. Successful people are willing to help others along their journey to financial freedom.

Getting help from other people is about building relationships. It's not about exploiting people. By building a team of competent people around you, you can benefit from a wealth of experience, money and time.

About The Author:

Roberto Lanzillotti would like to invite you to join our WayToWealth community. Visit http://waytowealthpro.com/ to download your free ebook, '6 Golden Rules of Building Wealth' and to learn more about income generating business systems.

(C) Copyright - Roberto Lanzillotti. All Rights Reserved.

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The Psychology of Victims

Do not expect something for nothing. Be willing to give an equivalent value for all that you desire, and include in your plans a definite provision for doing so. - Napoleon Hill

These words from Napoleon Hill define the essence of victimization. My most sincere desire is to assist investors and consumers on how to insulate and inoculate themselves against scams, frauds and predatory sales tactics. I am not discussing avoidance as simply avoiding scams and frauds will not totally protect you.

There are numerous services and information available to identify scams and frauds. However, even with all these strong services the number of victims grows. In fact in an economy such as we face today victims are multiplying rapidly. Why is that? I believe it is due to identifiable factors in the victim psychology. No one wants to hear that they alone were the cause of them becoming a victim. That is well too painful to hear and yet it is the simple truth. All victims of scams, frauds and predatory sales tactics are personally responsible for their victimization. Sorry to be so abrupt, but I know that you need to hear this in order to truly become insulated and inoculated against all predators who seek to steal your time, money and emotional well-being.

By accepting this you can learn the psychology of victimization. The foundation that con men build upon is exactly what Napoleon Hill mentions. You open the door to becoming a victim by first allowing the thought that there is something for nothing. The easy money, the allure of that FREE thing. Everything has value and profit is only available through value. Once you have full and total acceptance of this concept you will be able to take control over the psychological triggers that are used by the scammers and fraudsters.

The quick overview is that Fear, Hope and Greed are the 3 main emotions that lead to either financial success or financial disaster. The combinations and permutations of these 3 emotions will ultimately decide your financial fate. Sadly, those who have been victims of scams and fraud seem to continually fall victim to the same behavior patterns with these emotions.

Take a full inventory of these 3 emotions in your past decision making process and write down the effects, then you can begin to change the results. Start a financial journal today, this will allow you to develop a complete understanding of your values and how they impact your decisions about money. This will allow you to have the necessary defense mechanisms to create the insulation and inoculation process needed for full protection from scams, frauds and predatory sales tactics.

Next time, we will expand the discussion on the three basic emotions and how they work in combination to allow one to become a victim.

Learn the psychological triggers that influence the decision making process for investors and consumers http://www.smartdecisionsaboutmoney.wordpress.com

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Profitable Trading Requires Patience

The reason most of us trade is quite obvious. We want to increase the value of our net worth. For some, the reason also includes the satisfaction of the act of trading itself. To analyze, plan the trade, and then take action has its own psychological rewards when done right. Of course, when done wrong, it can be somewhat of a setback.

Putting aside the desire to increase your spendable income for the future, trading requires that we not think in terms of how much money we can make on any particular trade, but on how we can execute our trades in a way that over time the money will take care of itself. The money is the scorecard, to let you know how you are doing, but trading is the action that requires real seriousness to excel at.

It is the process of trading that some get frustrated about. They have the training necessary, but cannot seem to get their score high enough to satisfy them. It is not unusual for some to become impatient with their 'scores', and therefore start taking on more trades with less than acceptable risks in the hopes of scoring big.

An illustration of such a trader can be likened to a baseball player. As the ball is thrown by the pitcher, the player has the option to swing if it looks good or to stand pat and let it sail by. If the player sees too many good pitches go by, he will get three strikes and be out. Tired of seeing good pitches go by without getting a hit, the batter may decide to swing away, even at the ill-advised pitches. This only makes the player even more anxious to score, resulting in taking more bad pitches unnecessarily. This of course has detrimental results.

The player just illustrated was failing to take action on the good pitches and became impatient to score, thus taking action when none was required.

Then you have the player that patiently waits for the good pitch, and only then takes action. If he misses a few good pitches, he does not allow that to affect his strategy, knowing that more good pitches will come forth and if he remains patient and only swing at those and not the bad ones, he will have a good result at the end.

Successful trading is not a race. It is not a game where you must swing at every market dip and peak. It is the business of planning and preparing, to take action ONLY when the circumstances fit what was planned. Successful trading requires patience in order to pull this off.

Most traders know the feeling of seeing the market make some great moves and not being a part of it. It happens often, and it can tug on you. But knowing that it happens often should be the comforting thought that it will happen again soon. All the trader need to do is to patiently wait and plan for the next opportunity, and not to impatiently jump on the train just to feel the action of trading.

After a careful analysis of thousands of price charts over the span of two decades, I have long been convinced, and rewarded, that following the pattern of trends provides the better and safer opportunities for profits. I am also convinced that trying to fight against this understanding in order to be actively engaged in a trade has not been good to my pocket. If I could take back just those trades that were not following the logic of catching higher dips in bull trends and lower peaks in bear trends, it would remove from my record perhaps 75% of all losses ever incurred.

Working on being patient, but active in planning and ready to take action when the time is right, would greatly benefit your net results. Plan out your trades without procrastinating because of a long day or other time-wasting excuse, and then be patient and always ready to act when the time is right and not before. When the final inning has arrived, you will be better pleased with your score.

Do you want to be a profitable trader or investor? The key to low risk and high profit potential is TIMING! The FDates Market Timing Membership is all about TIMING. Know when the next top or bottom in the market is going to happen with greater precision. http://www.AmazingAccuracy.com

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How Time Value Affects Options

When referring to option pricing, time value is the amount an individual is willing to pay for the uncertainty that an option will complete in-the-money, or ITM. The more of a chance the option will not finish ITM, the higher an option's time value. However, if the chance of the option finishing ITM is almost certain, and even expected, the time value will be much lower.

There are three specific factors that can affect this level of uncertainty, and therefore affect both the time value and the option pricing.

Degree of Option MoneynessIV, or Implied VolatilityThe Amount of Time Till Expiration

In the following we will discuss exactly how these three factors affect time value and option pricing.

3 Factors That Affect Time Value

Because time value is one of the main factors that influences the price of options, the factors that affect this value can directly affect the pricing of your option.

Degree of Options Moneyness- Options Moneyness is a term that describes the link between the option's strike price and the current price of a stock. If the prices are the same and at-the-money, or ATM, the value will be higher. If the strike price of the option declines and move toward in-the-money (ITM) or out-of-the-money (OTM) the chance of it finishing ITM is much higher, so the value will be lower. Remember, the value of time is always higher for options when they are ATM, because there generally is more of a chance they will have the time and ability necessary to change when they are in this state, unlike when they are OTM or ITM.
Implied Volatility- When the implied volatility of an option, or IV, is low, the time value of the option will be much lower. The same logic would be used it if it was higher. Why is this, though? When IV is high, it fluctuates much more, in either direction, than it does when it is low. This means we expect there to be more fluctuations and more dramatic changes to the underlying price of the option. For this reason, we can't be certain if a high IV will allow the option to complete ITM, so it has a higher time value.
The Amount of Time Until Expiration- If there is a significant amount of time remaining until the option's expiration, the time value of that option will be much higher. If the option's expiration date is close, however, the value will be lower. This is because the longer period of time allows the price of the option to fluctuate more, giving it a greater uncertainty it will finish ITM. As the option approaches its expiration date, however, it has less time for change, and unexpected occurrences aren't as likely. This means the value sill most likely decrease.

Time value is one of the main factors that drives option pricing, so it makes sense that the factors that drive the value can directly affect the price of an option. If you are trying to determine the best option price, make sure to look at the time value of the option.

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