Sell Naked Put Options And Make Money At Home
This article will provide an overview of the concept behind selling naked (to open) put option contracts. This is a system that option traders utilize when the underlying price of the stock is forecasted to increase above the option exercise price (prior to the expiration date); you will make money with this strategy as long as the underlying stock price does not fall below your exercise price and force you into a margin call situation (discussed below).
In order to begin, you’ll need to deposit $2,000 into a brokerage account and agree to the terms of a margin account. A margin account ensures that a trader’s account balance meets the minimum requirement of the government and the brokerage firm. Typically, the minimum margin requirement is 20% (in cash or stock value) of the exercise price and 100% of the premium received. If the price of the underlying stock decreases below the exercise price, you will receive an alert notification (margin call) from your broker requiring that you add more funds, sell other stock, or close your position by buying-back your options (buy to close) at a loss. If you do not meet the margin call within 2-3 days, the brokerage firm reserves the right to liquidate other stocks (without your permission) in order to meet the minimum margin requirement.
Now that you’re all set up, here’s an example of how you would sell a naked put:
Let’s say that it’s March and you sell ten (10) contracts (1,000 shares of underlying stock) of a put option expiring in April (third Friday) for XYZ Company at an “out-of-the-money” exercise price of $50 and an option price of $1 / share; the stock is trading at $52 / share. The trade will make $1000 immediately ($1 X 10 contracts X 100 shares / contract).
Now let’s see how much of this money you can keep:
Scenario # 1:
If the price of the underlying stock increases above your exercise price prior to the expiration date, you keep all your money and the buyer’s put option expires worthless. Congratulations, you have done your homework and were successful at making money at home! However, it’s not always that easy to make money online.
Scenario # 2:
If the price of the underlying stock decreases below your exercise price, you will need to either buy-back your options at a loss or deposit more money into your margin account and hope the stock increases back above your exercise price by the expiration date. If the stock does not increase above your exercise price by the expiration date you will be subject to buying the stock at the exercise price, which is higher than the market price. Remember, the put option buyer has the power to obligate you to buy the stock at the exercise price if the value of the stock is less than your exercise price.
The biggest risk in selling naked puts is where the underlying stock suddenly collapses and you have to pay a lot of money to buy-back your options in order to avoid having to buy the underlying stock itself at the significantly higher exercise price (compared to the market price). In order to hedge against this potential scenario, many option traders opt to sell covered puts in order to make money online. This is where the underlying stock is sold short prior to the put sale; if the stock collapses, the stock will be bought at an exercise price that is lower than the short sale price and the investor actually makes money off the spread.
Although selling put options is an attractive strategy that does not require an initial capital investment, there are some calculated risks that are assumed with this strategy. In order to reduce your risks, you will need to have capital money at your disposal to hedge your trades. This requires that you make more money and potentially even capitalize on the bargain stock prices available during this recession. I can show you a quick online home business strategy that actually worked for me. I know, I know, I by no means am a home business type of guy, as stock and option transactions are my passion! What I found though was a simple and systematic online home business strategy that actually began to make me real money at home. It's called the "Independent Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money online.
What makes this opportunity so unique is the training and support that the company provides; you aren’t required to read a bunch of confusing books or CDs in order to get started. All training is conducted via a step by step video webinar (located on their website). You will literally have your website up within an hour and be making money online within 24 hours.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to my website, you can join a FREE webinar LIVE online and see exactly how IPC will make you money at home. I guarantee that after seeing this webinar you will be pleasantly surprised with the systematic methods that are used to make money online. I was and have been making money at home ever since.
IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all packaged in a way that will make you money at home.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com
or,
if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Wednesday, December 31, 2008
Monday, December 29, 2008
Sell Call Options And Make Money At Home
Make Money At Home Selling Call Options
This article will explain the “nuts and bolts” of selling call options. This is a method that investors employ when they believe that the price of the underlying stock will decrease below their option strike price (prior to the expiration date). You can either utilize this method if you own the underlying stock (covered) or don’t own the underlying stock (uncovered or naked). The latter strategy of selling naked calls is similar to renting something you don’t own; the appeal of making immediate money without investing capital (although risky) is the strength of this option strategy.
If you plan on selling calls, you will need to fund a brokerage account with a minimum of $2,000 and agree to the terms of a margin account. A margin account is a necessary evil if you want to sell calls as there are strict federal and brokerage firm regulations regarding the minimum balance that must be maintained in one’s account in order to execute this strategy. Typically, the margin requirement (account balance) is 20% (in cash or stock value) of the strike price and 100% of the premium received. If the price of the underlying stock increases too much and you DON’T OWN THE UNDERLYING STOCK (naked), your minimum balance requirement will increase and you will get an alert notification (margin call) from your broker requiring you to deposit more funds, liquidate other stock, or close your position by buying-back your options (buy to close) at a loss. If you do not address the margin call within 2-3 days, the brokerage firm will liquidate other stock or assets (without your permission) in order to bring your account into compliance.
As you can see, selling naked calls can get ugly very quickly. I actually recommend buying stock in companies that you want to own for the long term and selling covered calls against them; you’ll sleep better, trust me.
Now that you’re all set up, here’s an example of how the strategy works:
Let’s say that it’s March and you sell ten (10) contracts (1,000 shares of underlying stock) of a call option expiring in April (third Friday) for XYZ Company at an “out-of-the-money” strike price of $50 and an option price of $1.50 / share; the stock is trading at $49 / share. You make $1500 immediately ($1.50 X 10 contracts X 100 shares / contract).
Now let’s see how much of this money you can keep:
Scenario # 1:
If the price of the underlying stock decreases below your strike price prior to the expiration date, you keep all your money and the buyer’s call option expires worthless. Congratulations, you have done your homework and were successful at making money at home! You can do this again the next month (kind of like rent) and make money at home for doing virtually nothing. However, before you get too excited, it’s not always that easy to make money online.
Scenario # 2:
If the price of the underlying stock increases above your strike price at the expiration date, one (1) of the following will occur:
1) If you own the underlying stock, your brokerage firm will sell it at the strike price; hopefully, you sold the call at a strike price higher than your stock purchase price. I actually prefer to buy the underlying stock at bargain prices, during recessionary times (like now), and make money by selling calls (20% - 30% higher) when the stock is trading 20% -30% higher. The worst thing that can happen is that you sell your stock 20-30% higher than your purchase price and you can’t execute this strategy next month.
2) If you don’t own the stock (naked call), you will want to buy-back (buy to close) your call option (thereby closing / canceling your position) and excusing yourself from all responsibility to buy the stock at the higher market price. The amount you pay for your call will depend on how high the price of the underlying stock rises above your strike price. In most cases, you will end up paying more money than you received.
Remember, if you don’t close your position, you will be required to buy the stock at the higher market price in order to sell it to the option buyer at the lower strike price. If you don’t have either 80% of the value of the stock in cash or other stock that you can liquidate for cash, you will need to add more money to your account.
Now if you’re like me, you’re probably thinking that making money by selling covered calls against stock that you purchased at 20% discounts is the safest strategy. I happen to really like this strategy if I can buy stock, during recessionary times (like now), in companies that have shown exciting earnings growth (in the preceding quarters) and have new products or services.
If you want to sell covered calls and capitalize on this recession, my recommendation is that you find a way to make money in order to buy the stock now. I can show you an online home business that actually made me the money to invest pretty quickly (if you like). I know, I know, I by no means am a home business type of guy, as stock and option transactions are my passion! What I found though was a simple and structured online home business strategy that actually began to make me real money. It's called the "Independent Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money at home.
What makes this opportunity so unique is the training and support that the company provides; there are no confusing books or CDs to contend with. All training is conducted via a 5-hour video webcast that shows you exactly what and how to make money with this business. You will literally have your website up within an hour and be making money within 24 hours.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to my website, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision that will make you money at home. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make money online. I was and have been making money at home ever since.
IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all packaged in a way that will make you significant money online within 30 days.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
This article will explain the “nuts and bolts” of selling call options. This is a method that investors employ when they believe that the price of the underlying stock will decrease below their option strike price (prior to the expiration date). You can either utilize this method if you own the underlying stock (covered) or don’t own the underlying stock (uncovered or naked). The latter strategy of selling naked calls is similar to renting something you don’t own; the appeal of making immediate money without investing capital (although risky) is the strength of this option strategy.
If you plan on selling calls, you will need to fund a brokerage account with a minimum of $2,000 and agree to the terms of a margin account. A margin account is a necessary evil if you want to sell calls as there are strict federal and brokerage firm regulations regarding the minimum balance that must be maintained in one’s account in order to execute this strategy. Typically, the margin requirement (account balance) is 20% (in cash or stock value) of the strike price and 100% of the premium received. If the price of the underlying stock increases too much and you DON’T OWN THE UNDERLYING STOCK (naked), your minimum balance requirement will increase and you will get an alert notification (margin call) from your broker requiring you to deposit more funds, liquidate other stock, or close your position by buying-back your options (buy to close) at a loss. If you do not address the margin call within 2-3 days, the brokerage firm will liquidate other stock or assets (without your permission) in order to bring your account into compliance.
As you can see, selling naked calls can get ugly very quickly. I actually recommend buying stock in companies that you want to own for the long term and selling covered calls against them; you’ll sleep better, trust me.
Now that you’re all set up, here’s an example of how the strategy works:
Let’s say that it’s March and you sell ten (10) contracts (1,000 shares of underlying stock) of a call option expiring in April (third Friday) for XYZ Company at an “out-of-the-money” strike price of $50 and an option price of $1.50 / share; the stock is trading at $49 / share. You make $1500 immediately ($1.50 X 10 contracts X 100 shares / contract).
Now let’s see how much of this money you can keep:
Scenario # 1:
If the price of the underlying stock decreases below your strike price prior to the expiration date, you keep all your money and the buyer’s call option expires worthless. Congratulations, you have done your homework and were successful at making money at home! You can do this again the next month (kind of like rent) and make money at home for doing virtually nothing. However, before you get too excited, it’s not always that easy to make money online.
Scenario # 2:
If the price of the underlying stock increases above your strike price at the expiration date, one (1) of the following will occur:
1) If you own the underlying stock, your brokerage firm will sell it at the strike price; hopefully, you sold the call at a strike price higher than your stock purchase price. I actually prefer to buy the underlying stock at bargain prices, during recessionary times (like now), and make money by selling calls (20% - 30% higher) when the stock is trading 20% -30% higher. The worst thing that can happen is that you sell your stock 20-30% higher than your purchase price and you can’t execute this strategy next month.
2) If you don’t own the stock (naked call), you will want to buy-back (buy to close) your call option (thereby closing / canceling your position) and excusing yourself from all responsibility to buy the stock at the higher market price. The amount you pay for your call will depend on how high the price of the underlying stock rises above your strike price. In most cases, you will end up paying more money than you received.
Remember, if you don’t close your position, you will be required to buy the stock at the higher market price in order to sell it to the option buyer at the lower strike price. If you don’t have either 80% of the value of the stock in cash or other stock that you can liquidate for cash, you will need to add more money to your account.
Now if you’re like me, you’re probably thinking that making money by selling covered calls against stock that you purchased at 20% discounts is the safest strategy. I happen to really like this strategy if I can buy stock, during recessionary times (like now), in companies that have shown exciting earnings growth (in the preceding quarters) and have new products or services.
If you want to sell covered calls and capitalize on this recession, my recommendation is that you find a way to make money in order to buy the stock now. I can show you an online home business that actually made me the money to invest pretty quickly (if you like). I know, I know, I by no means am a home business type of guy, as stock and option transactions are my passion! What I found though was a simple and structured online home business strategy that actually began to make me real money. It's called the "Independent Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money at home.
What makes this opportunity so unique is the training and support that the company provides; there are no confusing books or CDs to contend with. All training is conducted via a 5-hour video webcast that shows you exactly what and how to make money with this business. You will literally have your website up within an hour and be making money within 24 hours.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to my website, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision that will make you money at home. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make money online. I was and have been making money at home ever since.
IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all packaged in a way that will make you significant money online within 30 days.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Sunday, December 28, 2008
Make Money At Home Buying Put Options
Buy Put Options And Make Money At Home
This article will explain the fundamentals of the put option buy transaction, in order for you to make money at home. This is a strategy that is employed when you believe that the underlying stock will decrease in value over a predefined period of time. As you read on, you’ll learn about a home business strategy that made me the money to invest and how to DOUBLE THAT MONEY within a year with a proven investment method; this is the same method that the rich and affluent upper-class has used to leverage their income in order to make more money.
The Concept Behind The Put Option Buy (To Open):
A put option is a contract between a buyer and seller, whereby the buyer is given the right, but not the obligation, to require that the seller buy a specified number of an underlying stock at a fixed price (strike price) on or before the expiration date (third Friday of every month). The put option buyer is hoping that the underlying stock price will DECREASE (below his strike price) prior to the expiration date, so that he could sell the put option and make a large premium (money) off the difference between the strike price and the lower market price; put option buyers are rewarded $1 for every $1 movement that the stock makes below the strike price! Given the low costs to buy put options (usually $1 to $3 / share), you can see how quickly your money could exponentially increase.
By the way, this also applies to call option buy orders, except, with call options you are hoping that the stock increases above your strike price prior to expiration. The following are key definitions that will help you understand the put option guidelines and make money at home:
Expiration Date: Options for the underlying stock are available for the current month, the month after, and every three (3) months; regardless of the month, all put options expire on the third Friday of the month in which you choose.
Time Value: With put options, you are paying for time, as you don’t own anything (i.e., stock). As such, put option prices are higher the more time you have. In all cases, you are hoping that the underlying stock’s price will decrease (below your strike price) within the available time. On the third Friday of your expiration month, your option will expire worthless if the stock price has not decreased below your strike price.
Contract Size: Put option contracts are bought (at the ask price) and sold (at the bid price) at sizes of 100 shares (i.e., one (1) option contract controls 100 shares of stock).
Option increments: Option strike prices are available in $2.50, $5, or $10 increments / share
Pricing structure: The price of the put option is based on the strike price, relative to the price of the underlying stock, and the length of time before expiration; the longer the time, the higher the price. The following is the pricing scheme for each of the available option contract categories:
In-the-money: An option whose strike price is higher than the market price of the underlying stock. This is the point at which you want to be prior to the expiration date, as you make $1 for every $1 decrease in the underlying stock; you will make money at home if you find yourself in this situation! As such, the price of options in this category is the highest, as the price of the underlying stock is already lower than the strike price.
At-the-money: An option whose strike price is equal to the current market price of the underlying stock. The price of options in this category is moderate as there is a lower probability that the price of the underlying stock will decrease below the strike price by the expiration date.
Out-of-the-money: An option whose strike price is lower than the market price of the underlying stock. The price of options in this category is the lowest as there is even a lower probability that the price of the underlying stock will decrease below the strike price by the expiration date. However, the potential to make a lot of money exists in this category and at-the-money strike prices due to the lower cost to buy-in and the potential to make $1 per each $1 reduction (below the strike price) in the underlying stock.
Now, let’s sequence this altogether in a mock put option transaction. Let’s say that it’s March and you purchase ten (10) contracts (controlling 1,000 shares of underlying stock) of a put option expiring in April (third Friday) for XYZ Company at an “out-of-the-money” strike price of $50 and an option price of $0.75 / share; the stock is trading at $52 / share. You pay $75 for each contract, which equates to $750 for 10 contracts ($0.75 X 10 contracts X 100 shares / contract). Prior to the expiration date, the stock dips $4 to $48 and you sell your put options at $2 ($2 in-the-money), thus making $2,000 and securing a profit of $1,250 ($2 X 10 contracts X 100 shares / contract minus the purchase price of contracts).
Now if you’re like me, you’re probably thinking that this sounds great, but how do you make the money to invest? Don’t worry, I was asking the same thing before I learned about this home business methodology (by fluke). Now, for the record, I don't consider myself a home business type of person, as my enthusiasm lies with stock and option transactions. What I found though was a simple and structured online home business method that actually began to make me real money. It's called the "Independent Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money online.
This opportunity is different than other home businesses because it simply works, which shouldn’t be underestimated in this recession. I think it works because the system is laid out so clearly for you and you are shown everything you need to know in a 5-hour video tutorial (located on their website); there are no confusing books or CDs required with this one. You will literally have your website up within an hour and be making money online within 24 hours.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to the website below, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision that will make you money online. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make you money at home.IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all there in order to make you money at home.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com
or
if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
This article will explain the fundamentals of the put option buy transaction, in order for you to make money at home. This is a strategy that is employed when you believe that the underlying stock will decrease in value over a predefined period of time. As you read on, you’ll learn about a home business strategy that made me the money to invest and how to DOUBLE THAT MONEY within a year with a proven investment method; this is the same method that the rich and affluent upper-class has used to leverage their income in order to make more money.
The Concept Behind The Put Option Buy (To Open):
A put option is a contract between a buyer and seller, whereby the buyer is given the right, but not the obligation, to require that the seller buy a specified number of an underlying stock at a fixed price (strike price) on or before the expiration date (third Friday of every month). The put option buyer is hoping that the underlying stock price will DECREASE (below his strike price) prior to the expiration date, so that he could sell the put option and make a large premium (money) off the difference between the strike price and the lower market price; put option buyers are rewarded $1 for every $1 movement that the stock makes below the strike price! Given the low costs to buy put options (usually $1 to $3 / share), you can see how quickly your money could exponentially increase.
By the way, this also applies to call option buy orders, except, with call options you are hoping that the stock increases above your strike price prior to expiration. The following are key definitions that will help you understand the put option guidelines and make money at home:
Expiration Date: Options for the underlying stock are available for the current month, the month after, and every three (3) months; regardless of the month, all put options expire on the third Friday of the month in which you choose.
Time Value: With put options, you are paying for time, as you don’t own anything (i.e., stock). As such, put option prices are higher the more time you have. In all cases, you are hoping that the underlying stock’s price will decrease (below your strike price) within the available time. On the third Friday of your expiration month, your option will expire worthless if the stock price has not decreased below your strike price.
Contract Size: Put option contracts are bought (at the ask price) and sold (at the bid price) at sizes of 100 shares (i.e., one (1) option contract controls 100 shares of stock).
Option increments: Option strike prices are available in $2.50, $5, or $10 increments / share
Pricing structure: The price of the put option is based on the strike price, relative to the price of the underlying stock, and the length of time before expiration; the longer the time, the higher the price. The following is the pricing scheme for each of the available option contract categories:
In-the-money: An option whose strike price is higher than the market price of the underlying stock. This is the point at which you want to be prior to the expiration date, as you make $1 for every $1 decrease in the underlying stock; you will make money at home if you find yourself in this situation! As such, the price of options in this category is the highest, as the price of the underlying stock is already lower than the strike price.
At-the-money: An option whose strike price is equal to the current market price of the underlying stock. The price of options in this category is moderate as there is a lower probability that the price of the underlying stock will decrease below the strike price by the expiration date.
Out-of-the-money: An option whose strike price is lower than the market price of the underlying stock. The price of options in this category is the lowest as there is even a lower probability that the price of the underlying stock will decrease below the strike price by the expiration date. However, the potential to make a lot of money exists in this category and at-the-money strike prices due to the lower cost to buy-in and the potential to make $1 per each $1 reduction (below the strike price) in the underlying stock.
Now, let’s sequence this altogether in a mock put option transaction. Let’s say that it’s March and you purchase ten (10) contracts (controlling 1,000 shares of underlying stock) of a put option expiring in April (third Friday) for XYZ Company at an “out-of-the-money” strike price of $50 and an option price of $0.75 / share; the stock is trading at $52 / share. You pay $75 for each contract, which equates to $750 for 10 contracts ($0.75 X 10 contracts X 100 shares / contract). Prior to the expiration date, the stock dips $4 to $48 and you sell your put options at $2 ($2 in-the-money), thus making $2,000 and securing a profit of $1,250 ($2 X 10 contracts X 100 shares / contract minus the purchase price of contracts).
Now if you’re like me, you’re probably thinking that this sounds great, but how do you make the money to invest? Don’t worry, I was asking the same thing before I learned about this home business methodology (by fluke). Now, for the record, I don't consider myself a home business type of person, as my enthusiasm lies with stock and option transactions. What I found though was a simple and structured online home business method that actually began to make me real money. It's called the "Independent Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money online.
This opportunity is different than other home businesses because it simply works, which shouldn’t be underestimated in this recession. I think it works because the system is laid out so clearly for you and you are shown everything you need to know in a 5-hour video tutorial (located on their website); there are no confusing books or CDs required with this one. You will literally have your website up within an hour and be making money online within 24 hours.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to the website below, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision that will make you money online. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make you money at home.IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all there in order to make you money at home.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com
or
if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Friday, December 26, 2008
Make Money At Home Buying Call Options
Buy Call Options And Make Money At Home
This article will explain the “nuts and bolts” of buying call options. There’s also an overview of a home business strategy that made me the money to invest and how to DOUBLE THAT MONEY within a year with a proven investment strategy; this is the same strategy that the rich and affluent class has used for years to make their money work harder for them.
Buy (to open) Call Options:
A call option is a contract between a buyer and seller whereby the buyer is given the right, but not the obligation, to buy a specified number of an underlying stock at a fixed price (exercise price) on or before the expiration date (third Friday of every month). The call option buyer is hoping that the underlying stock price will INCREASE prior to the expiration date, so that he could either buy the stock at the lower exercise price and immediately sell it at market price (thereby securing a profit between the spread) or sell the call option (thereby closing his position) and receiving immediate money; typically, option buyers will sell the call option rather than buying the underlying stock at the lower strike price in order to make money. The following are key definitions that will help you understand the call option guidelines in order for you to make money at home:
Expiration Date: Options for the underlying stock are available for the current month, the month after, and every three (3) months; regardless of the month, all call options expire on the third Friday of the month in which you choose.
Time Decay: With call options, you are paying for time, as you don’t own anything (i.e., stock). As such, call option prices are higher the more time you have. In all cases, you are hoping that the underlying stock’s price will increase (beyond your exercise price) within the time allotted. When the expiration date arrives (i.e., absence of time), if the stock price hasn’t increased beyond your exercise price, your option will expire worthless.
Contract Size: Call option contracts are bought (at the ask price) and sold (at the bid price) at sizes of 100 (i.e., one (1) option contract controls 100 shares of stock).
Option increments: Options are organized by exercise prices that rise sequentially in $2.50, $5, or $10 increments / share
Pricing structure: The price of the call option is based on the exercise price, relative to the price of the underlying stock, and the length of time before expiration; the longer the time, the higher the price. The following is the pricing scheme for each of the available option contract categories:
1) Out-of-the-money: An option whose exercise price is higher than the market price of the underlying stock. The price of options in this category is the lowest as there is a higher risk that the price of the underlying stock will not surpass the exercise price by the expiration date; the call option buyer makes $100 / contract for every $1 that the stock price exceeds the exercise price. If the stock price does not exceed the exercise price by the expiration date, the call option expires worthless and the buyer loses his money.
2) At-the-money: An option whose exercise price is equal to the current market price of the underlying stock. The price of options in this category is moderate as there is a lower risk that the price of the underlying stock will not surpass the exercise price by the expiration date.
3) In-the-money: An option whose exercise price is lower than the market price of the underlying stock. The price of options in this category is the highest as the price of the underlying stock is already higher than the exercise price. At the expiration date, this is the only condition where you will make money.
Now, let’s sequence this altogether in a mock call option transaction. Let’s say that it’s March and you purchase ten (10) contracts (controlling 1,000 shares of underlying stock) of a call option expiring in April (third Friday) for XYZ Company at an “in-the-money” exercise price of $50 and an option price of $2.50 / share; the stock is trading at $52 / share. I know, I know-- it’s a mouthful, but take the time to re-read it so the calculations below make sense to you. Also, most option plays will build off this basic concept in order to make money online.
You pay $250 for each contract, which equates to $2,500 for 10 contracts ($2.50 X 10 contracts X 100 shares / contract). Prior to the expiration date, the stock rises $4 to $56 and you sell your call options at $6 ($6 in-the-money), thus making $6,000 and securing a profit of $3,500 ($6 X 10 contracts X $100 shares / contract minus the purchase price of contracts).
Now if you’re like me, you’re probably thinking that this sounds great, but how do you make the money to invest? Don’t worry, I was asking the same question before I discovered this home business strategy (by fluke). Now, for the record, I don't consider myself a home business type of guy, as stock and option transactions are my passion! What I found though was a simple and structured online home business strategy that actually began to make me real money. It's called the "Instant Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money online.What makes this opportunity so unique is the training and support that the company provides; there are no books or CDs that get mailed to you. All training is conducted on the website through an interactive video webinar, where the instructor shows you each step in a real time demonstration.
Although there is a little effort involved in getting this business started, you will know exactly what to do and how to do it. Keep in mind that this is a legitimate home business and not some pie in the sky “Get Rich Quick” tomorrow scheme. However, within 30 days, you should be making a pretty decent income. Continue to build the business and see how much money you really could make at home. It’s truly remarkable and I just thought I would be remiss if I didn’t at least mention this opportunity to make money at home in this article.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to my website, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision if you want to make money online. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make you money at home.IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all packaged in a way that will enable you to make money at home for a long time.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
This article will explain the “nuts and bolts” of buying call options. There’s also an overview of a home business strategy that made me the money to invest and how to DOUBLE THAT MONEY within a year with a proven investment strategy; this is the same strategy that the rich and affluent class has used for years to make their money work harder for them.
Buy (to open) Call Options:
A call option is a contract between a buyer and seller whereby the buyer is given the right, but not the obligation, to buy a specified number of an underlying stock at a fixed price (exercise price) on or before the expiration date (third Friday of every month). The call option buyer is hoping that the underlying stock price will INCREASE prior to the expiration date, so that he could either buy the stock at the lower exercise price and immediately sell it at market price (thereby securing a profit between the spread) or sell the call option (thereby closing his position) and receiving immediate money; typically, option buyers will sell the call option rather than buying the underlying stock at the lower strike price in order to make money. The following are key definitions that will help you understand the call option guidelines in order for you to make money at home:
Expiration Date: Options for the underlying stock are available for the current month, the month after, and every three (3) months; regardless of the month, all call options expire on the third Friday of the month in which you choose.
Time Decay: With call options, you are paying for time, as you don’t own anything (i.e., stock). As such, call option prices are higher the more time you have. In all cases, you are hoping that the underlying stock’s price will increase (beyond your exercise price) within the time allotted. When the expiration date arrives (i.e., absence of time), if the stock price hasn’t increased beyond your exercise price, your option will expire worthless.
Contract Size: Call option contracts are bought (at the ask price) and sold (at the bid price) at sizes of 100 (i.e., one (1) option contract controls 100 shares of stock).
Option increments: Options are organized by exercise prices that rise sequentially in $2.50, $5, or $10 increments / share
Pricing structure: The price of the call option is based on the exercise price, relative to the price of the underlying stock, and the length of time before expiration; the longer the time, the higher the price. The following is the pricing scheme for each of the available option contract categories:
1) Out-of-the-money: An option whose exercise price is higher than the market price of the underlying stock. The price of options in this category is the lowest as there is a higher risk that the price of the underlying stock will not surpass the exercise price by the expiration date; the call option buyer makes $100 / contract for every $1 that the stock price exceeds the exercise price. If the stock price does not exceed the exercise price by the expiration date, the call option expires worthless and the buyer loses his money.
2) At-the-money: An option whose exercise price is equal to the current market price of the underlying stock. The price of options in this category is moderate as there is a lower risk that the price of the underlying stock will not surpass the exercise price by the expiration date.
3) In-the-money: An option whose exercise price is lower than the market price of the underlying stock. The price of options in this category is the highest as the price of the underlying stock is already higher than the exercise price. At the expiration date, this is the only condition where you will make money.
Now, let’s sequence this altogether in a mock call option transaction. Let’s say that it’s March and you purchase ten (10) contracts (controlling 1,000 shares of underlying stock) of a call option expiring in April (third Friday) for XYZ Company at an “in-the-money” exercise price of $50 and an option price of $2.50 / share; the stock is trading at $52 / share. I know, I know-- it’s a mouthful, but take the time to re-read it so the calculations below make sense to you. Also, most option plays will build off this basic concept in order to make money online.
You pay $250 for each contract, which equates to $2,500 for 10 contracts ($2.50 X 10 contracts X 100 shares / contract). Prior to the expiration date, the stock rises $4 to $56 and you sell your call options at $6 ($6 in-the-money), thus making $6,000 and securing a profit of $3,500 ($6 X 10 contracts X $100 shares / contract minus the purchase price of contracts).
Now if you’re like me, you’re probably thinking that this sounds great, but how do you make the money to invest? Don’t worry, I was asking the same question before I discovered this home business strategy (by fluke). Now, for the record, I don't consider myself a home business type of guy, as stock and option transactions are my passion! What I found though was a simple and structured online home business strategy that actually began to make me real money. It's called the "Instant Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money online.What makes this opportunity so unique is the training and support that the company provides; there are no books or CDs that get mailed to you. All training is conducted on the website through an interactive video webinar, where the instructor shows you each step in a real time demonstration.
Although there is a little effort involved in getting this business started, you will know exactly what to do and how to do it. Keep in mind that this is a legitimate home business and not some pie in the sky “Get Rich Quick” tomorrow scheme. However, within 30 days, you should be making a pretty decent income. Continue to build the business and see how much money you really could make at home. It’s truly remarkable and I just thought I would be remiss if I didn’t at least mention this opportunity to make money at home in this article.
IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to my website, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision if you want to make money online. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make you money at home.IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all packaged in a way that will enable you to make money at home for a long time.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Wednesday, December 24, 2008
Make Money At Home (The 90’s Internet Bubble)
Make Money Online (The Burst of the Century)
Stock market trading in the United States can be traced back to over 200 years ago. During this time, there have been a few notable peaks (bubbles) and valleys (crashes); two (2) of the most famous stock market bubbles of the twentieth century were due to speculative activity surrounding the development of technological innovations (e.g., 1920’s and late 1990’s). The 1920’s saw the widespread introduction of an amazing range of technological innovations including radio, automobiles, aviation and the deployment of electrical power grids. The 1990’s (dot-com bubble) was the decade when Internet and e-commerce technologies emerged. At the time, many investors were able to make a lot of money at home in the stock market.
Prior to the bursting of the "dot-com bubble," (March 2000) former Fed Chairman Alan Greenspan talked about the "irrational exuberance" associated with the wide-spread purchase of internet stocks, despite exorbitant “Price-to-Earnings” (P/E) ratios (i.e., overvaluation); the P/E ratio is a measure of how expensive a stock is. For example, a P/E ratio of 20 means that investors are paying $20 for each $1 of earnings; P/E ratios of 10-25 are generally accepted rates that investors will pay for stock.
During the dot-com bubble, investors were willing to invest in internet companies that had P/E valuations of more than 30. Now, this “in and of itself” isn’t a bad thing, but becomes very risky when investors believe that the high growth in earnings will last forever; the fairy tale usually crumbles very quickly when earnings begin to level off and the speculation is replaced with the reality of business cycles. The fact is that over the long term, businesses just can not consistently sustain large double-digit “quarter-over-quarter” sales growth.
As a result of the burst, many dot-com companies ran out of capital and were either acquired or liquidated. eToys’ share price, for example, fell from the $80 reached during its IPO (May 1999) to less than $1 when it declared bankruptcy. This is just one case of many where businesses were dissolved as a result of the burst. Even the largest of the dot-com companies, such as Amazon.com and eBay, experienced huge share price reductions (approximately 65-80%) by 2001; Yahoo actually fell from a high of $128 at the peak of the bubble to $4 at the end of the bubble. And again, many investors were able to make a lot of money at home; this time they were buying put options and shorting the stock.
As a stock option enthusiast and historian, I was enthralled with the activity surrounding this dot-com bubble and burst. Although I managed not to make a significant income during this cycle, I did manage to learn some very insightful things about the stock market and myself. While looking for ways to make money at home in order to generate enough income to play again, I actually discovered a home business strategy (by fluke).
Now, I don’t consider myself a home business type of guy, as stock and option transactions have always been my passion, but I couldn’t help but spread the word on this one. This home business relies heavily on the concept of residual income earned off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides. The comprehensive video tutorial (located on their website) walks you through every step of the process; there are no confusing books or CDs. After your training, which takes about 5 hours to complete, you know exactly where to focus your efforts in order to make money online in the quickest way. Although this business does take some initial effort, you will make money many times over, once you are set up. This still beats all the scams out there or the Online Paid Surveys that pay you peanuts for working at home all day. Besides, again, with this business, the more work you put in, the more money you make online with the residuals.
If you go to the website below, you can join a FREE webinar LIVE online and see why the “Instant Profit Center” is such a smart and profitable decision. I guarantee that after seeing this webinar you will be shocked by the potential of this new program to make money at home. I was and have been making money at home ever since.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Stock market trading in the United States can be traced back to over 200 years ago. During this time, there have been a few notable peaks (bubbles) and valleys (crashes); two (2) of the most famous stock market bubbles of the twentieth century were due to speculative activity surrounding the development of technological innovations (e.g., 1920’s and late 1990’s). The 1920’s saw the widespread introduction of an amazing range of technological innovations including radio, automobiles, aviation and the deployment of electrical power grids. The 1990’s (dot-com bubble) was the decade when Internet and e-commerce technologies emerged. At the time, many investors were able to make a lot of money at home in the stock market.
Prior to the bursting of the "dot-com bubble," (March 2000) former Fed Chairman Alan Greenspan talked about the "irrational exuberance" associated with the wide-spread purchase of internet stocks, despite exorbitant “Price-to-Earnings” (P/E) ratios (i.e., overvaluation); the P/E ratio is a measure of how expensive a stock is. For example, a P/E ratio of 20 means that investors are paying $20 for each $1 of earnings; P/E ratios of 10-25 are generally accepted rates that investors will pay for stock.
During the dot-com bubble, investors were willing to invest in internet companies that had P/E valuations of more than 30. Now, this “in and of itself” isn’t a bad thing, but becomes very risky when investors believe that the high growth in earnings will last forever; the fairy tale usually crumbles very quickly when earnings begin to level off and the speculation is replaced with the reality of business cycles. The fact is that over the long term, businesses just can not consistently sustain large double-digit “quarter-over-quarter” sales growth.
As a result of the burst, many dot-com companies ran out of capital and were either acquired or liquidated. eToys’ share price, for example, fell from the $80 reached during its IPO (May 1999) to less than $1 when it declared bankruptcy. This is just one case of many where businesses were dissolved as a result of the burst. Even the largest of the dot-com companies, such as Amazon.com and eBay, experienced huge share price reductions (approximately 65-80%) by 2001; Yahoo actually fell from a high of $128 at the peak of the bubble to $4 at the end of the bubble. And again, many investors were able to make a lot of money at home; this time they were buying put options and shorting the stock.
As a stock option enthusiast and historian, I was enthralled with the activity surrounding this dot-com bubble and burst. Although I managed not to make a significant income during this cycle, I did manage to learn some very insightful things about the stock market and myself. While looking for ways to make money at home in order to generate enough income to play again, I actually discovered a home business strategy (by fluke).
Now, I don’t consider myself a home business type of guy, as stock and option transactions have always been my passion, but I couldn’t help but spread the word on this one. This home business relies heavily on the concept of residual income earned off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides. The comprehensive video tutorial (located on their website) walks you through every step of the process; there are no confusing books or CDs. After your training, which takes about 5 hours to complete, you know exactly where to focus your efforts in order to make money online in the quickest way. Although this business does take some initial effort, you will make money many times over, once you are set up. This still beats all the scams out there or the Online Paid Surveys that pay you peanuts for working at home all day. Besides, again, with this business, the more work you put in, the more money you make online with the residuals.
If you go to the website below, you can join a FREE webinar LIVE online and see why the “Instant Profit Center” is such a smart and profitable decision. I guarantee that after seeing this webinar you will be shocked by the potential of this new program to make money at home. I was and have been making money at home ever since.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Sell Stock Short And Make Money At Home
Make Money At Home Selling Stock Short
The stock trading strategy that will be outlined here pertains to selling stock that you don’t own (i.e., selling short) and making money at home. Selling a stock short involves borrowing the stock from an investment firm and then selling the borrowed stock in the market. The seller hopes to buy the stock back in the future at a lower price in order to make money (off the sale and purchase price spread) and then deliver the borrowed stock back to the lender. You make money online when you buy the stock to close (if the stock decreases), as the short sale proceeds are maintained in a brokerage account and are transferred to your money market account when you close your position.
The strategy does come with risks and can be very tricky if the stock price rises. The amount of money that you could potentially lose can increase infinitely (in theory) as the stock price may continue to rise and you will be required to either buy the stock at a higher price (and lose money) or place more money in your margin account in order to meet the minimum balance requirement (i.e., margin call). Needless to say, this strategy is intended for stock market bubbles and / or for advanced investors who have the knowledge and money to weather the storm during minor upward fluctuations in the share price.
In order to make money at home with this strategy, you will need to open a brokerage account and agree to the terms of a margin account. A margin account ensures that a trader’s account balance meets the minimum requirement of the government and the brokerage firm. Typically, the initial margin (balance) requirement for short sales is 50% (in cash or stock value) of the short sale price. However, once the short sale is executed, you must keep at least 35% (in cash or stock value) of the short sale price in order to comply with the requirement. In other words, if the stock price increases too much (approximately 10% - 15%), you will receive an alert notification (margin call) from your broker instructing you to add more funds, sell other stock, or buy some of the short stock at a loss. This is how the brokerage firm manages the risks of the loan while ensuring that the stock does not increase too much before action is taken by you (or them, if necessary). If you do not meet the margin call within 2-3 days, the brokerage firm reserves the right to liquidate other stocks (without your permission) in order to meet the minimum margin requirement.
So, selling stock short is not for the faint-hearted and requires that you have quick access to cash in order to ride the waves of price fluctuations. I can show you a quick strategy that will actually make you additional money in order for you to trade in the stock market and make money at home. I know, I was skeptical at first too, but this home business seems to work better than the short sale strategy, while hedging your risks more. Now, don’t get me wrong, there are hedge strategies that I use on a routine basis, like option spreads, that I really like; however, I just thought that I would be remiss if I didn’t at least mention this home business here as this business continues to work and make money online for me.
I happened to discover this home business opportunity by fluke, while looking for ways to make money at home for retirement investment and general supplemental income. What I found was a strategy that relied heavily on the concept of residual income off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides; they’ve replaced all the books and CDs with a comprehensive video tutorial (located on their website) that walks you through every step of the process. You will literally have your website up within an hour and be making money online within 24 hours. I don’t consider myself a home business type of guy, as stock and option transactions are my passion, but I couldn’t help but spread the word on this business and the potential for you to make money at home.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
The stock trading strategy that will be outlined here pertains to selling stock that you don’t own (i.e., selling short) and making money at home. Selling a stock short involves borrowing the stock from an investment firm and then selling the borrowed stock in the market. The seller hopes to buy the stock back in the future at a lower price in order to make money (off the sale and purchase price spread) and then deliver the borrowed stock back to the lender. You make money online when you buy the stock to close (if the stock decreases), as the short sale proceeds are maintained in a brokerage account and are transferred to your money market account when you close your position.
The strategy does come with risks and can be very tricky if the stock price rises. The amount of money that you could potentially lose can increase infinitely (in theory) as the stock price may continue to rise and you will be required to either buy the stock at a higher price (and lose money) or place more money in your margin account in order to meet the minimum balance requirement (i.e., margin call). Needless to say, this strategy is intended for stock market bubbles and / or for advanced investors who have the knowledge and money to weather the storm during minor upward fluctuations in the share price.
In order to make money at home with this strategy, you will need to open a brokerage account and agree to the terms of a margin account. A margin account ensures that a trader’s account balance meets the minimum requirement of the government and the brokerage firm. Typically, the initial margin (balance) requirement for short sales is 50% (in cash or stock value) of the short sale price. However, once the short sale is executed, you must keep at least 35% (in cash or stock value) of the short sale price in order to comply with the requirement. In other words, if the stock price increases too much (approximately 10% - 15%), you will receive an alert notification (margin call) from your broker instructing you to add more funds, sell other stock, or buy some of the short stock at a loss. This is how the brokerage firm manages the risks of the loan while ensuring that the stock does not increase too much before action is taken by you (or them, if necessary). If you do not meet the margin call within 2-3 days, the brokerage firm reserves the right to liquidate other stocks (without your permission) in order to meet the minimum margin requirement.
So, selling stock short is not for the faint-hearted and requires that you have quick access to cash in order to ride the waves of price fluctuations. I can show you a quick strategy that will actually make you additional money in order for you to trade in the stock market and make money at home. I know, I was skeptical at first too, but this home business seems to work better than the short sale strategy, while hedging your risks more. Now, don’t get me wrong, there are hedge strategies that I use on a routine basis, like option spreads, that I really like; however, I just thought that I would be remiss if I didn’t at least mention this home business here as this business continues to work and make money online for me.
I happened to discover this home business opportunity by fluke, while looking for ways to make money at home for retirement investment and general supplemental income. What I found was a strategy that relied heavily on the concept of residual income off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides; they’ve replaced all the books and CDs with a comprehensive video tutorial (located on their website) that walks you through every step of the process. You will literally have your website up within an hour and be making money online within 24 hours. I don’t consider myself a home business type of guy, as stock and option transactions are my passion, but I couldn’t help but spread the word on this business and the potential for you to make money at home.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Sunday, December 21, 2008
Trade Stocks And Make Money At Home
The Psychology of Trading:
Stock trading in the United States Stock Market can be both exhilarating and scary. The dynamic fluctuations of this system are governed primarily by the human psychology or emotion pertaining to the potential loss of money (fear) or gain of money (greed). At the core, trading in the stock market is a gambling exercise that forces you to evaluate your life goals, psyche, risk tolerance, and knowledge; nonetheless, the “good news” is that the gambling and emotional components of trading can be reduced from 100% to about 10-20% (depending on the strategy and duration of the play) if you equip yourself with the following knowledge:
1) Technical analysis (interpreting charts in order to determine buy and sell signals).
2) Fundamental analysis (interpreting financial statements).
3) Stock Market Cycles (e.g., four year presidential cycle, annual seasonality, Halloween
Indicator, or lunar cycle).
4) The available strategies
If you become versed in these key trading components, you will be able to quell the emotions and make rational decisions based on knowledge and a higher awareness. This focus will translate into you making money in the stock market while staying home – kind of like a home business.
As a matter of routine, I try to exit my option trades after making 30%-35% of my initial investment. Although the pipe-dream of doubling your money off one trade can be entertaining and exciting, I have found that mindset to be self-defeating in the long term and not conducive to making consistent money online; I have, however, been able to double my money a few times during earning announcement runs. Nonetheless, 30% - 35% is not that bad of a “Return on Investment” (ROI). That’s still significantly higher than what banks will pay you on your money, most mutual funds, and the yearly inflationary rate.
Now if you don’t have money to invest right now, there are option and stock trading strategies that you can execute without any upfront capital. However, there are margin requirements that must be met. That means that you will still have to fund your margin account with at least 20 % of the strike price (options) and 50% for short sales (stock). The bottom-line is that you need money to make money at home. I can show you the one (1) and only home business strategy that actually facilitated me in making the initial money to invest. I know, I was skeptical at first too, but, I just thought that I would be remiss if I didn’t at least mention this home business strategy here.
I happened to discover this home business opportunity by fluke, while looking for ways to make money for investment and general supplemental income. What I found was a method that relied heavily on the concept of residual income off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides; they’ve replaced all the books and CDs with a comprehensive video tutorial (located on their website) that walks you through every step of the process. You will literally have your website up within an hour and be making money at home within 24 hours. I don’t consider myself a home business type of guy, as stock and option transactions have always been my passion, but I couldn’t help but spread the word on this business.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
Stock trading in the United States Stock Market can be both exhilarating and scary. The dynamic fluctuations of this system are governed primarily by the human psychology or emotion pertaining to the potential loss of money (fear) or gain of money (greed). At the core, trading in the stock market is a gambling exercise that forces you to evaluate your life goals, psyche, risk tolerance, and knowledge; nonetheless, the “good news” is that the gambling and emotional components of trading can be reduced from 100% to about 10-20% (depending on the strategy and duration of the play) if you equip yourself with the following knowledge:
1) Technical analysis (interpreting charts in order to determine buy and sell signals).
2) Fundamental analysis (interpreting financial statements).
3) Stock Market Cycles (e.g., four year presidential cycle, annual seasonality, Halloween
Indicator, or lunar cycle).
4) The available strategies
If you become versed in these key trading components, you will be able to quell the emotions and make rational decisions based on knowledge and a higher awareness. This focus will translate into you making money in the stock market while staying home – kind of like a home business.
As a matter of routine, I try to exit my option trades after making 30%-35% of my initial investment. Although the pipe-dream of doubling your money off one trade can be entertaining and exciting, I have found that mindset to be self-defeating in the long term and not conducive to making consistent money online; I have, however, been able to double my money a few times during earning announcement runs. Nonetheless, 30% - 35% is not that bad of a “Return on Investment” (ROI). That’s still significantly higher than what banks will pay you on your money, most mutual funds, and the yearly inflationary rate.
Now if you don’t have money to invest right now, there are option and stock trading strategies that you can execute without any upfront capital. However, there are margin requirements that must be met. That means that you will still have to fund your margin account with at least 20 % of the strike price (options) and 50% for short sales (stock). The bottom-line is that you need money to make money at home. I can show you the one (1) and only home business strategy that actually facilitated me in making the initial money to invest. I know, I was skeptical at first too, but, I just thought that I would be remiss if I didn’t at least mention this home business strategy here.
I happened to discover this home business opportunity by fluke, while looking for ways to make money for investment and general supplemental income. What I found was a method that relied heavily on the concept of residual income off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.
Also, what makes this opportunity so unique is the training and support that the company provides; they’ve replaced all the books and CDs with a comprehensive video tutorial (located on their website) that walks you through every step of the process. You will literally have your website up within an hour and be making money at home within 24 hours. I don’t consider myself a home business type of guy, as stock and option transactions have always been my passion, but I couldn’t help but spread the word on this business.
For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103
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