Recently, oil prices had skyrocketed. Most
of this price increase was due to speculation by hedge funds and wealthy
investors who were betting on oil price reaching $200 per barrel. It did
go above $145 but then the market collapsed. The collapse was mainly due
to the financial crises in the stock markets. Most of these hedge funds
had to liquidate their positions in the oil markets in order to cover
the losses they had suffered in the stock markets. Similarly, currency
markets have long been the playground of the rich. Hedge funds,
institutional investors, and wealthy people use forex markets to make
huge sums of money. Remember George Soros, he had made his fortune in
the currency options markets. Options trading can be done on stocks,
stock indices, currency, gold, oil etc.
Option trading is one of the great ways to
hedge your risk and increase returns. For example, when you purchase a
stock, you pay the price and take on the risk of price volatility.
Options contract give you the right to buy or sell a specific number of
shares at a fixed price known as exercise price or strike price at a
future date. This right comes with the payment of small premium called
options price. In case, you don't exercise your right, the contract
lapses and you only lose the premium you had paid while purchasing the
options contract. Option contracts give you the power of leverage but at
the same time come with limited risk.
Options can be very profitable but
nevertheless, risky as well. Most of the options traders trade options
without ever trying to understand the theory underlying options. You
need to understand the theory behind options because without it you
won't be able to develop your strategy for exploiting a particular
profit making opportunity. This is one of the main reasons why most of
the traders make unprofitable option trades. Options are very powerful
and can make you lots of money only if you know how to trade them. So,
your small investment in good options trading training can be returned
many many times. But, without proper training most of your trades will
make you lose your money.
Options University was founded by Ron
Ianieri and Bret Fogle in 2004 with the purpose of providing top of the
line courses, seminars and live web classes on options trading to
investors. Ron Ianieri had been a professional options floor trader and
is the Chief Options Strategist at the Options University. He knows the
intricacies behind options trading strategies. He can take you by hand,
starting from the very basics of options theory and make you a master
options trader in a few months time. Enroll in his
Options Mastery Classes. Live online classes will start in the
middle of January.
