Now, let's say a call option on the stock with a strike price of $165 that expires about a month from now costs $5.50 per share or $550 per contract. Given the trader's available investment budget, he or she can buy nine options for a cost of $4,950. Because the option contract controls 100 shares, the trader is effectively making a deal on 900 shares. If the stock price increases 10% to $181.50 at expiration, the option will expire in the money and be worth $16.50 per share ($181.50-$165 strike), or $14,850 on 900 shares. That's a net dollar return of $9,990, or 200% on the capital invested, a much larger return compared to trading the underlying asset directly. (For related reading, see "Should an Investor Hold or Exercise an Option?")
Volume price analysis makes sense to me, and her (and others') assertions that the market is controlled by insiders whose moves can be seen by analyzing volume is the best explanation I've seen yet for why price action forms certain consistent patterns. My previous concept of technical analysis was that specific price patterns form when there are enough people who believe it will, simply a self-fulfilling prophecy, and I could never quite accept that as a reliable way to make money. Now I understand how volume affects candle formation, and how insider action is reflected in volume, and it's all logical. I can trade on that with confidence, which is the biggest thing I've gotten from these two books.
Another possibility is to sell the call option to someone else before it expires, giving them the right to buy Purple Pizza shares at the below-market price of $50 per share. Since you bought the option when it had less value—i.e., when Purple Pizza stock was selling for less than $50 per share—you can potentially sell your option for a higher price and make a profit (not counting fees and commissions). In this scenario, you would make money buying and selling only the option; you’d never own actual Purple Pizza shares.
Forex is a good place to earn money as it is a type of investment, and people all around the world are trading currencies daily. How much you can earn depends mostly on how much you invest, basically, like any type of investment. Profits can range from a couple of dollars to thousands and more every month. That is the obvious reason why some people are only trading on FOREX for a living. Where there is money there are always some risks and it is not uncommon for people to lose almost all of their money invested, but you have to have strong foundations to make it. You can’t build Empire State building on a shallow concrete slab. That is why you have to read a lot and inform yourself about Forex. You will probably learn about various trading strategies you can use which can minimize risk and maximize your profit.
Checking the reviews should be a good start in avoiding any potential scams. Another key indicator of a less desireable site or course is one guaranteeing or proposing outrageous returns. Forex trading is a long term game that requires a sound knowledge of the concept and the application of logical strategies. All courses should be focused on teaching you about the forex world in general, and then include some of the coaches personal strategies that they use for trading. Anything with a ‘get rich quick’ feel to it is not worth the time it took to download the page and you should stay away.
If the price of the underlying increases and is above the put's strike price at maturity, the option expires worthless and the trader loses the premium but still has the benefit of the increased underlying price. On the other hand, if the underlying price decreases, the trader’s portfolio position loses value, but this loss is largely covered by the gain from the put option position. Hence, the position can effectively be thought of as an insurance strategy.
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal." It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.