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Brad Levi

ASIO Investment Tools inc. www.analyzetrade.com Founded by veterans of the management and development of financial software systems, together with veterans in the hedge fund, portfolio, and risk management industries, ASIO Investment Tools Inc.

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As we all know, the passage of time affects the premium of options, particularly the OTM options, the less an option is ITM the more the factor of time decay matters (The Theta metric) we know that this time decay accelerates as soon as the option enters the final 30 days of its term, and at expiration date the time element will have completely diminished to zero

Common Mistakes Option Traders Make

Most untrained option traders, and even seasoned stock traders and investors who have just moved onto option trading, make a series of mistakes, and that really shows a lack of understanding and a tendency to do things in a hasty way, a tendency to underestimate numerical values and data readings as being ‘too small and not much of an issue’

Low Budget Option Trading Strategies

I am sure we would all like to make a lot of money with the best option trading ideas In fact, there are concepts and methods that can be implemented using a small options trading account, for example, using a $,2000 account, and risking $300 - $500 on single, selective, and fair probability trades

Options on VIX

Since 2006, a new commodity has been made available to traders, that is options contracts on the VIX itself (The option volatility index) There are many traders who are looking to capitalize on the moves of implied volatility, now these new option contracts offer traders the ability to profit (or hedge against) directly from volatility

We know that when we buy options contracts, we use the appropriate strategy and then attempt to make money either on the intrinsic part of the option premium (where Delta matters most) or on the extrinsic part of the option premium (where volatility matters most), beyond that, there are also other factors that can have an enormous impact on the option premium, such as; Strike price relative to stock price, (ITM or OTM), and the stock’s own Beta parameter, Beta measures the volatility of the stock and its correlation to the stock index it’s listed on

Bull Spread For Wal-Mart in 2010

Mkt cap 20655B, P/E 15

Many traders find the option trading activity a risky and unmanageable, well, it all because of lack of knowledge Buying and selling stocks, is surely a craft you should work on very carefully



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