Rimm options trading terminology


Rimm options trading terminology


As a precursor to using options it is imperative that you understand basic options terminology. My plan is to post links to each of these posts on the left hand side of my blog so you can easily access them. One of the difficulties in making a transition from stock trading to option trading is dealing with all of the additional variables that affect your trades.

For example, when I tradlng stock, all I really pay attention to is the stock chart. kptions When long the stock, if the price moves up I make money and if it moves down I lose money. Put another way, the price of the stock is the only variable that directly affects the profit or loss of a stock trade. A short squeeze implies that short sellers are being opgions out of their short positions, rimm options trading terminology at a loss. A short squeeze rimm options trading terminology generally triggered by a positive development that suggests the stock may be embarking on a turnaround.

One such candidate is RIMM. Following its earnings announcement about two weeks ago, implied vol has optins precipitously to around 30%. Just about all options these days are seeing vol at 52 week lows. Brad Tompkins has written a few terminolovy posts on Options Basics, so be sure to review his posts as well.Consider this to be part 1 of trading options into binary events.




Rimm options trading terminology

Rimm options trading terminology


Add a comment

Your e-mail will not be published. Required fields are marked *