Options trading? You say you never heard of it? There is a whole financial world out there that you may know nothing about it. Stocks and Bonds and Lions oh my. 🙂
If that describes you don’t feel bad, you’re definitely not alone. Most people live their lives from paycheck to paycheck and robbing from Peter to pay Paul.
So is making money with something like options trading really available to the common man? Absolutely – it is. If You want to become a successful options trader – the best thing to do is to study up. Thankfully the Internet is inundated with great information on the topic.
Image by Big Dubya via Flickr
TradeKing Senior Options Analyst, Brian Overby, discusses potential option strategies for the looming fiscal cliff.
Surprisingly, the options marketplace – until recently – has been discounting fears of “fiscal cliff” fallout throughout the month of December. For the month the VIX – the so-called “fear index” of the market – was hanging out near the yearly lows of around 16.00. Meanwhile, the VVIX (or, the “VIX of the VIX”) touched a 52-week low of 77.21 on November 30th, and rarely broke through the 85 level during the month, also suggesting steady nerves. This implies that the near-term options on the SPX index and the VIX index were relatively “cheap” protections for most of the month.
However, now the fiscal cliff is looming and, even though the markets seem to be in stalemate mode waiting to for the cliffhanger to end, the VIX and the VVIX recently have jumped up over 19 and 90 respectively. If you are concerned about the potential cliff, there are some options strategies that may be able to save you some sleepless nights….More at Potential options strategies for the fiscal cliff | TradeKing
Think you have what it takes to become a successful options trader? For sure you can! If others are doing it successfully you can too. You just have to have the desire to make it happen. See you next blog post.