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

SPY. SPY Options. S&P 500 - Options Trading system, signals, qqq, spy options trading, signal life, trading, qqq options, spy optins

Options Stock Trading

Home FAQ Signals ETFs Trading
 Trade History  Simple to Use  Signal Example  Alert Example

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...

What does "Signal Life" mean?

"Signal Life" is defined as the time span (number of days or hours) within which a trade has to be initiated. If an option's price does not reach the "Suggested Entry Price" or trade above it within this period of time, the signal is cancelled.

We provide our members with the signal life parameter, because each day an option loses part of its (time) value as it gets closer to expiration.

The signal life parameter also prevents you from opening a trade if the market doesn't move according to our signal.

Question: An option hit your "Suggested Entry Price", but a trader did not yet open a trade and now the price has moved down. Should a trader wait for another signal or should I still open a trade?

It all depends on the risk tolerance and personal trading style. A trader may wait for our next signal or decide to open a trade at the current market price ". In any case, we do not recommend opening a trade once the current market price exceeds our "Suggested Entry Price".

Important: A signal that does not lead to the initiation of a trade is always cancelled. A review of changing market situations may prompt us issue a new trading signal along with a new "Suggested Entry Price". A new signal will always cancel out a previous 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...