SPY (S&P 500 Index Tracking Stock) - SPDRs - Spider - Options Trading and uncovered options

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Options Stock Trading

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Information Corner:

Put Options - Put options (or "puts") give you the right, but not the obligation, to sell an underlying security at a specific price for a fixed period of time...

Stock Market Outlook (as of Thursday, May 17, 2012)

The broad market suffered a strong decline today. The strongest decline was noted on the Russell 2000 (2.29% loss) while S&P 500 lost only 1.51%. The NASDAQ 100 ended session lower for an eightth time in a row. Of the last 14 sessions, the S&P 500 has closed red 11 times. The DJI is also down on 12 of the last 14 sessions. On the NASDAQ 100, we saw the 10th down-close in the last 11 sessions. The Russell 2000 are now down on 11 of the last 14 sessions as well. The NASDAQ 100 pushed to new fifteen-week low today. The Russell 2000 made a new eighteen-week low today. The S&P 500 saw its lowest close in seventeen weeks today. The week ends with the NASDAQ 100 lossing 4.09%; the S&P 500 showing a minus of 3.58%, and the Dow closing down 2.94%.

3,170 million shares traded on the S&P 500 today. This is 20% more than the average volume we saw on a daily basis during the past 3 months.

Full Market Outlook...

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Name of Underlying Security,
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Futures Trading

Description: futures on indexes, index futures, trading, index, futures, US index, equity futures, ETF, ETFs futures

Futures Glossary: A B C D E F G H I-J-K L M N O P Q R S T U V W-X-Y-Z

Best Commodities Trading

There are many online futures brokers. Since nobody like to jump from a broker to broker, the first step in futures trading is to find a good broker which would fit your trading needs. It is recommended to dedicate time for a brokerage research - it will save you time time and emotions in the future.

When it comes to the finding of best futures broker, a few points should be considered:

1) Is a futures broker is in good standing with the NFA (National Futures Association)?

2) Did a broker have any complaints and/or violations in past?

3) How professional is selected broker? (call them and ask for a somebody who may help you to understand how futures trading works)

4) What account funding requirements have to be met to open an account with a broker?

5) How big are the broker's commission rates and any other fees that may be charged?

6) Does a broker provide any educational material?

7) Does a broker provide any material for analysis? (quotes, charts, news, research results, etc)

8) How fast are placed orders executed?

About Futures Trading

Futures trading is highly leveraged financial instrument. With relatively small investment a commodity trader can control many times greater values. As an example a gold contract worth $75,000, depending on the market, can be traded with an initial margin of about $3,000 - $4,000. High leverage of the futures attract many speculators which make them highly volatile.

High volatility and high leverage provide ability of high profit in a short period time with relatively small margin amount if a trader is on the right side of the market.

Information Corner:

Buying a call option ("a call") gives you the right, but not the obligation, to purchase an underlying security at a predetermined price for a certain time period. Call options are available in various strikes and expiration dates...

OEX Options - OEX is the ticker symbol for the S&P 100 Index ("Standard and Poors S&P 100 Stock Index"). OEX options allow traders to speculate on the movement of the OEX...

Straddle Options Trading - A straddle may be bought when a trader expects a large market move but is unsure of its probable direction. The strategy is usually applied in a flat market when volatility is low...