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Trading Stock Options



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.


This article was written by @bulma and edited by @flashfiction. This article can be found on PROFITRIBES.

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ICO / Crypto

In a bloodbath be a market vampire




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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ICO / Crypto

Bitmex The Boss Of Margin Trading





No It Does Not Mean Bit Mexico

The Bit Mercantile Exchange aka Bitmex has become know as the worlds highest volume trading platform with over 1 million daily transactions and growing! As far as cryptocurrency exchanges go it has a pretty solid history starting back in 2014 and running smoothly up until today. Bitmex has established itself as the go to Exchange for traders looking to leverage their holdings and trade on the market. It is not an eachange to be used by novices because you could wind up emptying your account.

Leverage Leverage Leverage!!

The margin trading options available to you on Bitmex represent a smattering of the top cryptos and the opportunity to trade some of them up to 100x leverage. Thats righ you could basically trade with a minimum of .0006 btc and leverage it to be worth .06 btc. OF course havign such a position is risky because it may get liquidated quickly depending on the markets volatility. If you can understand the threat of liquidation and plan around it then trading on bitmex can be an attractive option.

Perfect For Down Markets

With cryptocurrency in general experiencing a year long downturn, exchanges like bitmex that allow you to go long or short on cryptocurrencies is a helpful tool. Using Shorts one could track the market as it declines and profit (in BTC) on the declining market. That means you would end up with a larget bitcoin positions when the market begins to reverse upwards. Of course being able to short Bitcoin is not an easy task but can be done, especially if you understand the RSI and MACD indicators.

Its Kinda Like Gambling

When you use bitmex you are in essence bettin on which direction the chosen market is going to go. If your right it pays, if your wrong its costs. Although its not as simple as picking a direction, you can learn how to trade on bitmex relativley easily by readingthrough thir FAQs and reaching out to the Bitcointalk community. As always remember when using trading platforms, only invest what you are prepared to lose.

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ICO / Crypto

What is the 0x Protocol?





All assets will be on a blockchain eventually

Atleast thats what the creators of 0x protocol believe. It’s not trade secret that cryptocurrency exchanges are plauged with security threats onana almost daily basis. Many Blockchain evangelists beileve that the key to stemming the tide of hackers is to create a decentralized exchange. 0x has found a way to incorporate the best of both the centralized and decentralized worlds.

the 0x protocol is no shitcoin, in fact it is probably one of the most useful tokens to exist on the ethereum blockchain. Its creators believed that eventually the ethereum blockchain will trade assets of all kinds, and will need a way to exchange those tokens easily.

0x attempts to help improve decentralized exchanges

The 0x Project is more like a decentralized exchange than a centralized one with some key differences. 0x was created to solve the primary problems decentralized exchanges present. mainly the facts that they are expensive, slow, illiquid, and are not interoperable. operating an exchange on a blockchain usually means fees associated with transactions and trades that become prohibitive. The 0x protocol was designed to solve those problems by standardizing the protocol. this protocol sends orders back to the blockchain after settlement instead of on a transactional basis. Thus the 0x protocol is much faster and more efficient.

Built to be a foundation

The 0x protocol is designed to be used as a means for developers to build their own decentralized exchanges. An added bonus for Devs is that 0x charges no fees so you have the option of having a fee free exchange. Currently unfortunately you can only use the 0x protocol with Ethereum Erc20 tokens. 0x is only compatible with the Ethereum virtual machine so it is unlikely you will be able to trade other promising coins like Stellar with it. IF you are an investor i can only suggest that you remember that 0x is directly dependent on the continued growth of the ethereum platform and its production of tradeable coins. If another platform takes over the smart contract game then it is likely 0x will be quickly forgoten.

Use case matters

My favorite coins to talk about are coins with actual use cases that are ACTIVE, not those undeployed promises some platforms offer. THis coin was designed in conjunction with some of the biggest names in cryptocurrency including Coinbase. With their recent publicity i though it would be good to teachfolks about what 0x actually does. Now that you know you can check out the exchange they created here

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