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Why Trade Index
Options?
- Less
uncertainty: Because the price and volume fluctuations are much
higher for a particular stock than they are for an index, that is
the key reason why we trade index options rather than options on
individual stocks. Stocks often react wildly to unpredictable
events, such as rumors, news earning reports and others. We have
greatly lowered the degree of uncertainty that is associated with
the trading of individual stock options by tailoring our trade
indicators to the trading of index options on the NASDAQ 100, S&P
100 and the S&P 500.
- Lower
Capital Investment: buying into the index directly is as easy as
buying into a stock. Because there is no need to worry about loads
or other hidden fees, you end up with low commissions.
-
Reduced volatility: Indexes are much less volatile than their
constituent stocks. A sudden volatile even on an individual stock
(news, earnings, up-/downgrades, etc.) will not impact the index to
the same degree that it impacts the stock itself, because an index
is comprised of many individual stocks. The price movements in the
index are much less pronounced and volatile due to the presence of
many other stocks in the index which tend to smooth out or buffer
such impacts.
For Instant Access,
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Just one winning trade
could pay for your membership for years to come!
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Information Corner:
Market Timing - We trade options based on market timing principles.
This means we analyze past trends in options volume and options cash
volume in order to generate an accurate forecast of the probable future
market trends...
Options Basics - Purchasing an
option gives the buyer the right, but not the obligation, to buy or sell a
specific amount of an underlying security at a specific price within a specified
time period...
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