Category: Options

What are LEAP Options?

The term for LEAP options (also called LEAPS) is Long-Term Equity Anticipation Securities. A boring term, I know. But it’s simple and not complicated at all: LEAPS are just normal options (securities) with a very long expiration time. Whereupon “very long” means an expiration time longer than one year. But anything else is practically the same. In this article, we will take a closer look on the whole topic about this type of options and check how to make money in stocks (or even futures) by trading LEAPS.

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What is the Options Price Reporting Authority?

Accurate real-time data is essential to the proper functioning of the options market, but it would be tremendously challenging for individual associations to collect and process options market data. Exchanges involved in options trading produce huge amounts of data, far beyond of data than other asset classes generate. In other words: options data traffic produces at least 75% of all market data! This growth in data has caused a seemingly interminable increasing demand in hardware and software for vendors and customers as well. This all by increasing of the operating costs with just a little or even no benefit for the market participants. Hence, a solution has to be developed to address the issue. The solution which was developed has got the name Options Price Reporting Authority (OPRA).

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What is a strangle in options trading?

A strangle is one of the very common strategies in options, and every beginner in options trading will learn to know this one (amongst some of the other basic strategies). In this article we are going to answer the question “What is a strangle in options”. Also, we will check the differences between a long and a short strangle, and check which of both strategies is better. So, let’s start!

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What is Max Pain?

Like the most concepts in trading, Max Pain is another “theory” or concept from the US related to trading with options. This theory is considered to be controversial and there is going a lot of discussion on about its usefulness and disutility. In this article I’ll explain you the idea behind this concept and I will also show you whether it’s worth for you to delve deeper into this topic or if it’s neglectable. So let’s start!

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Options vs. Futures: What’s the Difference?

As opposed to many other websites describing the topic options vs. futures, I don’t agree with the statement that options and futres are derivative investments. There are not at all! What they are is that they are derivative trading instruments (or derivative products, methods or whatever). But they are not investments! Though I agree that there are several similarities between both: they are both speculative, they can be highly profitable and, if you handle them in a wrong way, highly risky. In this article I will show you the difference of options vs. futures. So let’s start, folks.

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