Options Action – What is It?
Options Action, hosted by Melissa Lee, is an infrequent trading format that highlights short-term stock market trends using fundamental analysis of the market. Each week, a number of experienced traders gather for an hour-long, fast-paced show which focuses on how to maximize profits and more importantly, limit potential losses using only common option strategies. Options Action combines these “trend based” strategies with the experience and research of a small number of professionals to give you an accurate picture of the markets every week. Each week’s program consists of a unique combination of options trading information, market research, and interviews with successful option traders. Options Action was designed by an Options Trading Club member who has had years of experience in the markets and the brokerage services she provides. She brings this knowledge to viewers through an engaging and easy to understand format.
Options Action was developed for a number of reasons, and each season features a different set of options topics focusing on one or two particular markets. For example, the first season focused on Stock Options, while the second season looked at Short Term Options Trading. The third season will soon focus on Online Options Trading.
Options Trading Club is based out of Boston, Massachusetts. This company is a full service brokerage firm which provides comprehensive options trading and advice. They offer over 100 options shares and related derivative instruments. Their website provides access to more than two hundred screens where traders can examine multiple versions of every stock, option, commodity, and index. Options Trading is not really an investment, but rather simply an attempt to protect or grow one’s capital by employing options trading strategies.
Options Trading is a rapidly growing market with daily volume averaging nearly six billion dollars. It is important to understand that Options Trading is not actually a strategy per se, but more of a set of tactics for placing bets on the outcome of underlying securities. Essentially, you would be placing bets on a particular security’s price movement over a defined period of time. Option trading can be done with short calls or long puts. Many Forex Trading Strategies will tell you that Option Trading is one of the easiest ways to make money, due to the fact it is so accessible.
The most common way traders purchase Options is by utilizing a Spread Bet. A Spread Bet is essentially a bet on whether a certain security will in fact move in a certain direction or not. In essence, you are gambling. However, there are many who take Option trading very seriously and make a great deal of money doing so. These investors take the time to carefully study the various components of the underlying asset and place their bets accordingly.
As you can see, options trading is not as cut and dry as it seems. Many aspects of Options Trading must be studied before a successful investor can make a decision as to what they are going to do. Understanding these aspects is only the beginning, but if you are interested in getting involved in trading options, be sure to start by reading a good options trading article.