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Options Selling – 5 Simple Success Tips
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Relocation And The Currency Market
As we all know, there are many important areas to be considered in the process of relocating. From the physical removal of household goods, to settling children into new schools, there seem to be an endless number of items to check off on a relocation ‘to-do’ list. Yet as a currency specialist we continually find that the all important purchase of the employees local currency is often...
Options Selling – 5 Simple Success Tips
If you buy an option, there’s a 90% chance it will expire
worthless - therefore, the person who sold the option to you
has a 90% chance of success.
Most traders don’t consider selling options, as they see
it as too risky - but the odds of success are high, and if you
do it correctly, you can reduce risk, and make huge profits
over time, with the odds firmly on your side.
How to Sell Options
Selling options offers unlimited risk, with limited profit
- and that’s why many people don’t like selling options. There’s
a high amount of risk for a low reward - but to balance this,
the odds of success are high - very high!
Options buyers think they have a great deal - with unlimited
profits, and limited risk - but the odds are simply not in their
favor. This is very similar to the losing gambler, who backs
the outsider - sure, the rewards are fantastic - but the chances
of winning are slim.
The key to option selling, is that you’re trading with the
odds firmly on your side - and you can improve your chances
of success, by following these five tips:
1. Let time decay work in your favor - the less time an
option has to expiry, the more time decay will hit value - increasing
your odds of success.
2. Sell into price spikes, when markets move quickly, sell
premium. Great markets are those that have had unsustainable
price moves that are due a pullback.
Great markets to sell options in are ones driven by greed
and fear.
Watch the papers and newswires for markets that have heavy
public participation - and there are “sure fire” reasons the
move will go on forever. You know the move won’t go on forever,
and a pullback will occur - and you can collect sizeable premiums
from the inexperienced traders, who believe the hype.
3. Diversify your selling across a number of uncorrelated
markets - keep in mind that you have unlimited risk, so don’t
have all your eggs in one basket.
Not every trade will go in your favor, and there will be
moves that see prices spike, to trade in the money against you
- make sure you have a wide enough spread to cover losses
4. If in doubt get out - if the option you have trades in
the money, get out and cover - to succeed in options selling
requires great discipline in these situations.
5. Ensure you have adequate capitalization - to hold your
positions to expiry.
In the short term the value of your portfolio will fluctuate
so have enough reserves
90% Odds of Success - but a Warning!
Option selling is for experienced traders only - those who
have discipline, a sound method, and have the capital to diversify.
While the odds of success are high, before you start, make
sure you approach option selling with the right mindset.
Take Advantage of the Buyers, and Collect their Premiums!
A long-term strategy, can and will make you huge profits
over time. The odds of success are great - and there are plenty
of inexperienced traders, buying options on broker recommendations,
greed, and fear - which can, and will provide you with fantastic
long-term gains.
Option selling is more lucrative than option buying - and
this is not just a view - it’s a fact.
To make money in options, learn how to sell correctly -
and you’re on the way to huge consistent profits.
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The Google Tool for Resource Company Investors
The Google Tool for Resource Company Investors
By
William Cate
If you are an investor in a resource company, ask the company for the longitude and latitude of the mine, mineral prospect, oil well, timberlands, farm, ranch or whatever resource the company claims to be developing. Then, download "Google Earth." The basic software is free. The upgrades cost money. The upgrades are justified, if...
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