Trading Blog

You might be a stock trader, or just interested in learning more about how to trade and make the most out of your stock investment. Regardless, successful stock trading is not that easy. You must first have the financial capital to start and a very great endurance for risks.

A large percentage of the Steady Options community consists of do it yourself (DIY) investors who prefer to manage their own trading and long-term investing accounts. This is a great way to gain firsthand experience about how markets work, but at times it may be beneficial to get professional input on investing and other personal financial planning decisions.

Some varieties of call and put spreads are also called seagull spreads. It is so called because it contains a body and two wings. If the body is short, the wings are long, and vice versa. This 3-contract strategy includes two calls and a put, or two pouts and a call.

Right now, people are feeling at a bit of a loss as to what to do with their money. Those who usually invest are probably well aware that the market is pretty tricky right now. During unprecedented times, there are often unprecedented outcomes when it comes to investments.

As a trader, it’s very likely you are currently or will one day be working for yourself. Although it sounds appealing initially, it also presents several challenges. It’s not always easy to stay productive and motivated when you work for yourself.

The classic 60/40 stock/bond portfolio has stood the test of time in both hypothetical and live fund results from multiple fund sponsors such as Vanguard, Fidelity, and American Funds. 60/40 balances enough in equities (60%) to generate long-term growth with enough in high quality bonds (40%) to manage downside risk.

The binary option involves two possible outcomes, which are determined by whether the contract expires in the money. To profit from a binary option, a trader needs to be on the desired side. Exercise is automatic for these products, so that a profit or loss is added to or taken from the trading account immediately upon expiration.

Making investments can be an effective way to increase your capital and even generate an income, but it can take time to develop trading skills. Whether you’re new to trading or you’ve been playing the markets for some time, there’s always more to learn. If you want to improve your returns, take a look at these top tips to enhance your trading in 2021:

The LEAPS (long-term equity appreciation securities) is an option that does not expire for as long away as 30 months or so, but is it a better alternative than shorter-expiring contracts? Traders selling covered calls may be attracted to the premium of 11 on an ATM strike, versus the less appealing 1.5 on a 2-week contract.

2020 and 2021 so far have been extremely difficult for many of us. Coronavirus and Covid-19 have spread across the world leaving havoc and chaos in their wake. We had to worry about the physical health of ourselves and our loved ones throughout this pandemic.

The typical barrier option yields a payoff when the underlying reaches a predetermined price. Expanding on this idea is the double barrier option. This expansion of the barrier option is most applied to currency trading, indices, commodities, or OTC options, but not exchange-based trading.

Some options produce a payoff if the underlying reaches a preset price. This is a great advantage of the barrier option because traders can expect profits (or worthless expiration) depending on the underlying behavior. The barrier refers to methods by which the underlying expires, as well as whether the price moves in the desired direction.