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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,
Sign up Now!
Just one winning trade
could pay for your membership for years to come!
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Information Corner:
Safe Investing -
There is no trading system in the world that can guarantee a 100%
success rate. Sooner or later, you will likely experience a negative
trade, i.e., a trade where you lose all the money you invested...
Options Symbol - In order to trade a
particular option, you might need to look up its symbol. (If you trade with us,
we will of course provide you with the exact symbols you require to place a
trade)...
Open Interest - For a given
option, the open interest is the number of open contracts - either puts or calls
- that have not been exercised, closed or expired on a particular day.
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