The put-call ratio has long been viewed as an indicator of investor sentiment in the markets. Technical traders use the put-call ratio as an indicator of performance and as a barometer of the overall market sentiment. You know how much you can lose from the moment you initiate the trade.But, more than 75% of stocks trade sideways over the long haul.
That means only a quarter of stocks make a noticeable move up or down in a given time frame. wtock And what do you need when you buy options. Trading ranges are profitable territory for sellers. With a little effort and information, traders can use the collar concept to manage risk and, in some cases, increase returns. This article compares protective and bullish collar strategies in terms of how stock options call and puts your arms can help investors manage risk and increase returns.How Protective Collars WorkThis strategy is often used to hedge against the risk of loss on a long stock position or an entire equity portfolio by using index options.
These speculators making bets pittheir own emotional fortitude and raw intellect against countlessother speculators in the modern financial equivalent of ancientRoman gladiatorial combat.These anc willingly enter the financial-market arena fullyrealizing that only one winner will leave. Either a speculator willemerge victorious with a win or his counterparty will carry the dayand vanquish the speculator. Unlike investing, in pure speculationonly one side of a trade can be a winner.
Need anaccounting, tax or financial advisor. Look in ourDirectory. However, if you are in the business of ajd selling stock, then your gains and losses from options will be treated asincome (on income account.
Stock options call and puts your arms