Options and futures are both financial derivatives that can be used to hedge risk or speculate on price movements, but they have distinct characteristics and use cases.Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined pr...
Imagine you're anticipating a significant market move, but you're unsure whether it will go up or down. You could try to guess the direction, but why leave it to chance? Enter the put ratio backspread, a powerful options strategy designed for traders who want to benefit from large price movements, r...
Closing an option position can seem complex, but understanding the process can simplify the task and help you make better decisions. Here’s a detailed guide to closing an option position, including key strategies and considerations:1. Understand Your Option PositionBefore closing an option position,...
In an economic downturn, the stability of one's investments becomes paramount. For Australian investors, the ASX (Australian Securities Exchange) offers a range of stocks that can provide shelter against the storm of recession. These stocks, often categorized by their consistent performance and resi...
Short selling is a strategy that has gained traction in the financial markets globally, including in Indonesia. Bursa Efek Indonesia (BEI), the country's main stock exchange, has witnessed increasing interest in this trading tactic. But what does short selling really entail, and how does it function...
You're leaving money on the table. The protective put you placed a few months ago—intended to safeguard your portfolio—has done its job, but is that all it can do? What if I told you there’s more to this strategy than meets the eye? What if adjusting protective puts could transform your so-called sa...
In the world of stock markets, free float is a term that often gets tossed around but isn't always fully understood. It refers to the proportion of a company's shares that are available for trading by the general public, excluding those held by insiders, governments, or other large stakeholders. Und...
The options expiration cycle is a crucial concept in the world of finance and trading. It refers to the schedule on which options contracts expire, impacting the trading strategies of investors and traders. This guide will delve into the intricacies of the options expiration cycle, providing a detai...
Imagine waking up one morning to find that your investment portfolio has lost 20% of its value overnight. The fear, confusion, and uncertainty that come with such scenarios are all too real for many investors. This dramatic shift often results from share price volatility, a phenomenon that can have ...
Picture this: You’re sitting comfortably at your favorite café, sipping on a latte, and effortlessly making money from Bitcoin investments through Cash App. It’s not a fantasy; it’s a reality for many who have embraced the future of digital finance. But how did they get there? Let’s start at the end...
