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Trading Stock Options

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Trading stocks options is a chance to create some pretty good profits mainly because of the scale that options offer for traders. When trading options you basically by control of up to 100 shares of a stock per contract while your risk is usually limited to just the cost of the option and not the stocks.  This is one of the few trading instruments that offers this type of leverage with limited risk, but unfortunately many beginner traders fail to profit from options because they don’t really understand how to treat the options correctly.

Options trading can be a little more complex  than general stock trading. This is because normally, you decide how many shares you want and your broker fills that order at prevailing market price. Trading options requires some of these elements but also requires a few others including a more extensive process for opening an account.  now in recent years the account opening process has become a bit easier and you can begin trading options on the Robinhood platform with just some basic kyc information on sign up.

Now that you have your options account it’s time to consider the core elements of an options trade that will influence how you perform with this type of instrument.  The main things to take into consideration when starting in options contract is to decide which direction you think the stock is going to move, predict how far in that direction the stock price will move from the current price, and determine the timeframe in which the stock is likely to move.

Deciding directions that you think the stock is going to move determines what type of actions contract you take on either a call or a put option will be the choices you have available. A call option is a contract that gives you the right to buy a stock at a predetermined price this is usually called the strike price.  on the other hand if you think the price will decline then you will place a put option,  which will give you the right to buy 100 shares of the stock at the price that you set for the put.

After you’ve gotten an idea of which direction is that will go in now is time to choose how high or how long you think this that will move from the current price. An option is only valuable with the stock price closes  at or above the options price for a car or below for a put this is using referred to as in the money.

The price that you pay for an options contract has two components:  the intrinsic value and the time value. The intrinsic value denotes the difference between the strike price and the share price. Time value is whatever is left and helps us factory in the volatility of the stock.

The mot important of these is the time frame in which you think the stock price is likely to move. Every options contract has an expiration date this day indicates the last day that you can exercise the option. You can’t just put a date out of thin air the data usually provided to you by the platform that you were trading.  For a call option if you have chosen a position and the price is going up past the position you have chosen then it will positively affect the price of your actions contract where is if he has gone down past the position you have chosen it will negatively affect his contract.  if you have chosen to purchase a  put contract then if the price is declining past the point that you have chosen to purchase it then it will positively affect your position and if it increases beyond your position then it would negatively affect you.

Expiration date can range anywhere from days to years,  usually the most risky of the options contracts is the daily options contracts because the short amount of time that you have to exercise them. It is usually preferred to choose an options contract that is about a month out so that you can have ample time for the stock to rise or fall in price towards your position.  The downside to choosing long expiration date is that the cost of the options contract may end up being pretty high because of the fact that you have plenty of time for the price to reach your strike price.

With options a good strategy if you can afford it is to buy long-term expiration contracts with prices that are already in the money so that by the time the contract has expired you will indeed be well into the money and can sell for a decent profit.  In the coming weeks I will take some time to cover some of the action options strategies such as iron condors which will help you hedge against potential losses while trading.

If you’re interested in learning how to trade regular options or binary options then I suggest you visit Nadex where you will be able to find a wide variety of awesome webinars and tutorials regarding the ins-and-outs of action trading.  As always make sure to only invest what you can afford to lose and do your research in depth before choosing to make an investment into any new instrument.

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ICO / Crypto

Can cryptocurrency survive a gobal financial crisis?

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Is cryptocurrency a hedge against economic downturns?

The answer to this question is quite controversial, some would say yes because this is what crypto was made for; while others would chime that crypto is unproven in a downturn and will need to survive its first one before we can feel at ease about its survivability. Much of your perception on whether bitcoin and cryptocurrency in general will survive aneconomic crisis, is based on where you stand about cryptocurrency in general. Today we will talk about the possible survivability of cryptocurency in a crisis.

Is Venezuela a test case

Right now in Aouth America there are several financial crises transpiring that may create possible examples of how crypto will fare in a financial storm. In venezuela reports are coing out that many people are choosing to use cryptocurrency to pay for life expenses. The national government under President Maduro have begun to implement their own state backed cryptocurrency called the petro. The Petro is an asset pegged to the price of a barrel of oil and the Venezuelan government hopes it will help them escape dollar tyrany. Hyperinflation has taken its toll on Venezuelans but many of them were informed enough to seek financial refuge with cryptocurrencies. This is a great example of how when value leaves fiat the holders will seek to run to other assets to store value; that exodus now has cryptocurrency as an outlet for the fleeing fiat users.

We may see a big example soon enough

Much of the world is currently on the precipice of a financial downturn and if america keeps behaving the way it has been then we will likely see a major crises emerge in the next 5 years or so. some analysts see a move away from the dollar as a potential catalyst whilst others proclaim that the trade war and student debt will push us into the downturn of this decade. Unlike those times prior, now cryptocurrency has created and outlet for those funds that “dissappear” from markets as the major stakeholders cash out. The financial bigwigs are likely going to enter the cryptospace as they will soon see it as a way to maintain some value in the crises they create.

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Business

Global markets are getting volatile as trade spats continue.

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Trade wars taking their toll

This trade spat between the united states and China is becoming increasingly burdensome upon the people of the world. Emerging markets are tanking and as of this week the american market is also strugling. In america the pullback can be attributed to the corporate shareholders who have been on a buying frenzy, taking a breather and starting to sell. this has kocked the DOW and NASDAQ off off all time highs and caused concern for the smaller investors. There is widespread reports of a possible recession caused by these market circumstances and it could be big. Some cryptocurrency supporters believe that this round of economic turmoil will translate into a run up in the prices of bitcoin and some altcoins.

Will bitcoin prevail in the next downturn

for most of this year stocks in the usa have been on a tear rising similar to how crypto did in 2017. Some are saying this rise will lead to a huge correction that will lead many investors to begin using cryptocurrencies. They site the instances of countries like Venezuela who almost immediately turned to bitcoin and crypto in the midst of its current crisis. I personally hope that this current downturn comes to an end and hopefully some of that money in the hemorrhaging stock market s will find its way into crypto.

Check out this video that kind of explains some of whats going on from the crypto lark over on Youtube!

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ICO / Crypto

In a bloodbath be a market vampire

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Cryptocurrency is hemorrhaging and im a hungry vampire

Since the beginning of 2018 the cryptocurrency markent has experienced an epic sell off. Currently 90% of all cryptocurrencies are down atleast 80% from their highs a year ago. Some of you probably think this is the end of Bitcoin, but it is more likely the end of many Shitcoins with inactive platforms or illconcieved concepts. It is likely that over the next few months many coins will begin to get delisted a their values drop below $0.00, only the strong will survive this rapture.

You’ll live if you have an active platform

Platforms like Stellar, Binance, and Steemit are likely to endure through this apocolypse mainly due to their strong platforms and huge fanbases that, not only believe but also work hard to keep the blockchain running as a commnity. The coins that are still hinged upon promises and illusions will fall to oblivion. Take this time to evaluate you portfolia and rid yourself of shitcoins and prepare for the great buying opportunity that is about to present itself.

The long road ahead

The last bitcoin bear market lasted around 14 months and when it ended it still took nearly a year for crypto to really rally in 2017. This recession was an inevitable happenstance that many professional analysts predicted. In 2018 all the rumors were that Bitcoin would drop over 70% before rebounding and surpassing its all time highs. With all this news about institutional investments coming into cryptocurrency It is doubtful that the industry is dead. On the contrary I think it is the beginning of a new period in the crypto economy. Regulation is coming and when that happens the Institutional investors will begin pumping crypto as they build their corporate positions for the future.

### Watch the charts

Right now is not a very good buy situation but it would be a good idea to open positions after BTC droppes below $6000 because a strong rebound is likely. I say that because around $5900 is the mining profitability threshhold. We all know miners control the BTC market so it is a logical pivot and point of support for bullish traders. Try to average into the market and remember that your in it for the long haul.

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