Educational Articles

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Beginner		Category
	Basics - What is an Option? The right to buy or sell specific securities at a specified price within a specified time.	Option Trading
	Bring Fundamental Analysis into your Trading Fundamental analysis is an important tool that traders can use to increase their probability of success.	Finance
	Buying Deep ITM Options A good way of carrying out directional trading in high volatility market environments.	Option Trading
	Choosing the Best Option Strategy How to use Profit and Loss Diagrams.	Option Trading
	Choosing the Best Option to Purchase An option is a beautiful thing. Buy one.	Option Trading
	Covered Writing - A Way to Reduce Risk? Generating extra income from a stock portfolio.	Option Trading
	Exiting an Option Position An in-depth look at the options for exiting an option position.	Option Trading
	Generate Free OpScan Reports on DiscoverOptions The free OpScan tool on DiscoverOptions.com allows you to run pre-programmed scans on the entire options market.	Trading Concepts
	Hedging Your Portfolio with Index Options Analyzing how to hedge risk.	Option Trading
	Incorporating Options into your Trading Portfolio Think about how options fit in with your goals.	Option Trading
	Investing During A Recession Should the Economy Drive Your Investment Strategy?	Finance
	LEAPS LEAPs are an attractive alternative to stock ownership.	Option Trading
	Moving Averages The moving average provides a way to measure the mood of any market.	Technical Analysis
	Open Interest The importance of open interest when trading options.	Trading Concepts
	Options Expiration Cycles Choosing Options Expiration Cycle for Stocks.	Trading Concepts
	Option Strategies and the Use of Options One of the significant advantages of options is their flexibility.	Option Trading
	Protective Puts - Protect Your Stockholdings Buying a put gives an investor complete protection from a drop in the stock price below the strike price of the put.	Option Trading
	Review for Beginning Option Traders A review of some general rules for using options.	Option Trading
	Risk Graphs - Visualizing Your Profit Potential To trade options successfully, investors must have a thorough understanding of the potential profit and risk for any trade they are considering. For this the main tool that option traders use is called a risk graph.	Option Trading
	Support and Resistance Lines Support and resistance lines can give a trader valuable clues.	Technical Analysis
	Take Liquidity into Account in your Trading Decisions Investors require market liquidity.	Option Trading
	The Benefits of Listed Options The benefits to exchange-traded options are standardized contracts, liquidity, quick access to prices, and the use of clearing houses by exchanges.	Option Trading
	The Benefits of Trading with Options For anyone who is uncertain about how the stock market will act in the near term - and that describes just about every stockholder - options present tremendous opportunities.	Option Trading
	The Big Three Economic Indicators How Economic Factors Affect the Stock Market.	Finance
	The DiscoverOptions Fair Market Value Calculator The Fair Market Value Calculator is a free web based tool that allows you to calculate an option's theoretical fair value - no download is required.	Trading Concepts
	The Long Call Strategy When a call option on stock is purchased, the call holder is able to control the stock without actually possessing it, and does so for a fraction of the cost.	Option Trading
	The Long Put Strategy – Betting on the Downside Buying put options allows you to profit during seasons of bearish activity.	Option Trading
	The Role of News in Fundamental Analysis	Finance
	Tips For Beginners Preparing yourself before you start trading options.	Option Trading
	Understanding Volatility ...is of Vital Importance to Option Traders.	Option Trading
	Using Stops in Your Trading How contingency orders can ease your stress.	Trading Concepts
	Using the DiscoverOptions Probability Calculator The Probability Calculator is a web based tool that allows you to calculate the mathematical probability of certain prices being achieved during a given time period.	Trading Concepts
	Using the Right Option Strategy How do option strategies compare, and how should the individual trader select the best for himself?	Option Trading
Intermediate		Category
	As Expiration Day Approaches What to do if your options are trading below fair value.	Trading Concepts
	Debit Spreads How does a debit spread work, and why should you use it?	Option Trading
	Growth Investing Growth investing is another major school of investment theory that relies on analyzing the fundamentals.	Finance
	Horizontal Debit Spreads A neutral strategy when constructed using at-the-money options.	Option Trading
	How to Trade in Trending Markets A lot of money can be made by simply riding a trend.	Option Trading
	Pay Attention to Volatility When You Trade High IV is synonymous with expensive options; low IV is synonymous with cheap options.	Option Trading
	Playing Company Announcements	Trading Concepts
	Reading the Bid / Ask Spread Efficient and effective placing of limits is a must if you plan to successfully trade.	Trading Concepts
	Simulating the Underlying with Options Did you know there is an option strategy – involving just two options – that behaves exactly like a position in the underlying? It's called a synthetic.	Option Trading
	The Backspread An amazing little strategy when you expect a potentially big price move.	Option Trading
	The Beauty of Combinational Strategies Trades involving two or more options simultaneously.	Option Trading
	The Bull Put Spread - Collecting Income in a Bullish Environment The bull put spread is a useful tool for producing income in a moderately bullish market.	Option Trading
	The Covered Combo Would you like to pick up some good stocks just below current price levels? If your answer to that question is yes, you might want to consider the covered combo.	Option Trading
	The Credit Markets and Company Liquidity With the current turmoil in the credit markets, looking at the debt and liquidity position of a company can help you avoid nasty surprises.	Finance
	The Price to Earnings Ratio	Finance
	The Short Put Strategy - Selling Puts to Generate Income One way to generate income with puts is to simply sell them outright.	Option Trading
	The Stock Market and Individual Market Sectors Overall market conditions have a large effect on the prices of individual stocks.	Technical Analysis
	The Vertical Debit Spread - A Perfect Spread for Beginners So what is a vertical debit spread?	Option Trading
	Trading Volatility The essence of V-trading is buying cheap options and/or selling expensive options, typically holding until the options return to fair valuation levels.	Option Trading
	Trend Lines A stock or commodity will be in a definite trend about a third of the time.	Technical Analysis
	Using the Collar Trade Option traders have many advantages over long stock traders.	Option Trading
	Value Investing and Book Value Fundamental analysis can be a critical component to successful trading.	Finance
	Vertical Credit Spreads One of the safest and most successful strategies there is when you don't expect significant movement by the underlying in a specific direction.	Option Trading
	When should you exercise an option early? When its theoretical value is exactly at parity and its delta is exactly 100.	Trading Concepts
Advanced		Category
	Arbitrage Strategies and Price Relationships	Trading Concepts
	Buying and Selling Volatility Options are like a 3D chess game.	Option Trading
	Dividends and Interest Rates The Effect of Dividends and Interest Rates on Option Prices.	Trading Concepts
	Ever Considered Selling Naked Puts? Selling high volatility to generate income.	Option Trading
	In-the-Money Covered Calls Traders and investors use this strategy on bullish stocks.	Option Trading
	Iron Condors To trade condors, it is best to look at an index or high-priced stock.	Option Trading
	Life and Death and Company Liquidity Learning how to analyze a company's financial statement.	Finance
	Put/Call Parity and Synthetic Positions The theory of Put/Call Parity is important to know.	Option Trading
	Selling High Volatility The first step to selling high volatility is to find assets whose current implied volatility is much higher than usual, relative to it past history.	Option Trading
	Selling Naked Calls: A Risky Way to Get Income The naked call seller is interested in the same thing as the covered call seller - income.	Option Trading
	The Constant Elasticity of Volatility Understanding the Importance of the CEV factor.	Option Trading
	The Income Statement The income statement answers the all-important question: "Are they making money"?	Finance
	The Put/Call Ratio: A Useful Indicator of Sentiment One of the more reliable measures of sentiment for predicting future market direction.	Technical Analysis
	Using Long Synthetic Straddles with Stocks Stockholders and short sellers alike can use synthetic straddles to completely change the risk/reward of a directional stock position.	Option Trading
	Using VIX Options to Hedge Market Risk The VIX options can be used as a hedge to offset market risk.	Option Trading
	V - Trading Volatility trading, called V-trading for short, has two attractive sides.	Option Trading