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...

Trading Signals: Main Message

"Main Message" may consist of the following six types of messages - six types of signals that could be generated by our trading system. Note that an identical message will also be posted on our email-alert which are sent right after any of the signal is generated. Below we listed these signals:

"A New Signal was issued today." - indicates that a new signal was issued today.

"A New Suggested Exit was issued today." - indicates that our "Suggested Exit Price" was changed today for a current signal.

"A New Suggested Exit was issued today." - indicates that our "Suggested Stop-Loss Price" was changed today for a current signal.

"The Signal was cancelled." - indicates that a signal was cancelled because the signal life of the trade expired without a trade having taken place (see "Signal Life") or any other reason if the trade is still not opened according to "Suggested Entry Price"

"The position was opened today." - indicates that a trade was opened in accordance with our "Suggested Entry Price".

"The position was closed today." - indicates that a trade was closed in accordance with our "Suggested Exit Price".

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...