Articles tagged with "options trading"

Why We Always Have to Use Limit Orders in Options Trading

Why We Always Have to Use Limit Orders in Options Trading

A few weeks ago, we discussed how a stop-loss order works and why they’re so important. While a stop-loss is a key piece to risk management, some investors may not prefer to have a “hard” stop-loss. That is, a stop-loss order that is placed with a broker. Others prefer to monitor the position and, if […]

Picking the Perfect Trade: A Trading Guide for Beginners (Part 2)

In our last entry, we introduced the procedure for initiating a new trade. In essence, it boiled down to three things: Decide on a direction, a time frame and a strategy. So for example, let’s say we’re bullish over the next three to four weeks and plan to take advantage of that bias with a […]

Picking the perfect trade a guide for beginners

Picking the Perfect Trade: A Trading Guide for Beginners

The great thing — and daunting thing — about the stock market is its sheer vastness. There is no holy grail; there is no perfect market, sector, industry or stock to trade. It’s full of opportunity, yet full of pitfalls should you lose your way. When it comes to options trading, it simply comes down […]

Do You Use the Most Popular Options Strategies? Here They Are

Do You Use the Most Popular Options Strategies? Here They Are

Data is a big part of any business. Heck, just ask Facebook or Google about that. But even smaller companies like to have data on their customers to better improve their product offering. They want to know what is and what isn’t working. Or in Option Party’s case, we just want to know what our […]

OTM vs. ITM: What Does “In-The-Money” Mean?

OTM vs. ITM: What Does “In-The-Money” Mean?

Investors that have been getting into options trading have surely seen terminology relating to in-the-money. In fact, there are various “money-ness” terms in the options market. There’s also out-the-money and at-the-money. So what do all of these terms mean? Put simply, the ITM, OTM or ATM term refers to where the option’s strike price is […]