Tag: floor trader
SPX Options vs. SPY Options: Which Should I Trade?
What’s the Difference Between SPX and SPY Options? What Is SPX? SPX is the S&P 500 index, which is a stock market index that measures the performance of 500 large cap…
Read More »Option Trading and Slippage: The Bid-Ask Spread Explained
For example: You see a credit spread with a market of $1.00 bid and $1.60 ask. There is little chance of selling the spread and collecting $1.45 or $1.50 (unless…
Read More »Early Assignment Can Be a Gift
Looking at a common situation, suppose that you have written a covered call. You owned 300 shares of YFS (Your Favorite Stock Inc.), watched it rally, and finally decided that…
Read More »American vs. European Options: The Differences
In this article, we’ll discuss these differences and how they affect you, so you can discover how to avoid potentially costly problems. Differences There are four key differences between…
Read More »The Big Loss
The majority of people reading this are not profitable traders. If I could single out the most common culprit for sabotaging your trading it would have to be not being…
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