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

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Information Corner:

Why Trade Index Options - Less uncertainty: The key reason we trade index options rather than options on individual stocks is that price and volume fluctuations are much higher for a particular stock than they are for an index. Stocks often react wildly to unpredictable events, such as news, rumors...

Expiration Date - At the end of the expiration date, all those call options whose strike prices are higher than the price of the underlying stock or index will be worthless...

Start To Trade - Placing an options order is very similar to placing an order for a stock. If you use a live broker, call your brokerage firm and tell them which option you want to buy...

Signals' Example

Our email alerts and signals in the members' area consist of a set of three categories of messages. Below you can see an example:

It's not an actual signal.

This is an Example of our Signals only.

01/05/2012 09:10 EST - A New Signal was issued today.

Signal Date: 01/05/2012 09:10
Signal: Sell (Short) Puts
Security: QQQ
Symbol: QQQ Feb12 Put 58
Expiry Date: February 2012
Strike Price: $58
Exit Price: buy (cover) puts at or below $0.40
Stop Price: not set

NOTE: A signal is cancelled if the trade has not occurred until the market close on 01/05/2012

1st Message ("main message"):

Displays recent announcements associated with our signals. This message is always displayed. Click HERE to see examples.

2nd Message ("signal message"):

Shows the actual signal parameters, such as the type of signal, entry and exit prices, etc. This message is displayed only when a signal is issued. The message will not be displayed, when there is no signal, or a signal has been cancelled (when a trade was not opened according to "Suggested Entry Price" of the signal) or closed (when a trade was closed according to "Suggested Exit Price" of the signal).

3rd Message ("signal life message"):

Defines the time span (number of days) within which a trade has to be initiated after a signal has been issued. The signal life message is displayed only when a trade is not opened according to "Suggested Entry Price" of the signal.

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...