The Best Stocks for Options Trading in 2015 – A Guide to High-Returns and Low-Risks

Introduction:

13 Best Cheap Stocks for Options Trading - InvestorTrip
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In the realm of investing, there’s a realm where volatility and potential returns converge: options trading. Unlike traditional stocks, options provide investors the power to navigate市场 fluctuations with calculated precision. As 2015 stood poised to unleash a tapestry of new opportunities, seasoned traders turned their sights towards identifying the best stocks for options trading. This comprehensive guide will unveil the secrets behind maximizing returns and minimizing risks in the options arena.

Unveiling the Enigmatic World of Options Trading:

An option contract grants the buyer the right, but not the obligation, to buy or sell an underlying asset (e.g., a stock) at a predetermined price on or before a specific date. These contracts come in two flavors: calls and puts. A call option grants the buyer the right to purchase an asset, while a put option bestows the right to sell an asset. The allure of options stems from their ability to magnify gains or hedge against potential losses.

Navigating the Maze of Stock Selection:

When selecting stocks for options trading, several key factors come into play: volatility, liquidity, and volume. Volatility gauges the extent to which an asset’s price fluctuates, providing potential opportunities for profit. Liquidity measures the ease with which an asset can be bought or sold, and volume reflects the level of trading activity in a specific stock.

Seeking the Stars in the Options Firmament:

After meticulously considering these criteria, the following stocks emerged as prime contenders for options trading in 2015:

  • Apple (AAPL): The tech titan’s steady growth, strong fundamentals, and elevated volatility made it a compelling choice for both call and put options.
  • Amazon (AMZN): The e-commerce juggernaut’s dominance in online retail and its relentless pursuit of innovation fueled its attractiveness for options traders.
  • Alphabet (GOOGL): The parent company of Google, Alphabet, offered options traders exposure to the rapidly evolving world of digital advertising and search engine dominance.
  • Tesla (TSLA): The electric car pioneer’s disruptive technology and ambitious growth plans created a fertile ground for options trading, with both bulls and bears eager to capitalize on its volatility.
Read:  How Option Trading Works – A Comprehensive Guide to Maximizing Your Returns

Strategies for Success: Embracing Expert Insights

Mastering options requires not only stock selection prowess but also strategic trading techniques. Renowned options experts imparted their wisdom, offering invaluable guidance to help investors navigate the complexities of this market:

  • Technical Analysis Mastery: Scrutinizing historical price charts and identifying patterns can provide insights into future price movements, guiding options traders towards profitable decisions.
  • Leveraging Options Premiums: The initial cost associated with an options contract, known as the premium, can be used to optimize returns. Understanding the factors that influence premiums is crucial for options traders.
  • Risk Management Discipline: Options trading inherently carries risk. Establishing clear risk tolerance parameters and implementing sound risk management strategies are essential for long-term success.

Conclusion: Unlocking the Power of Informed Options Trading

Options trading presents a potent tool for investors seeking to enhance their returns and mitigate risks. By carefully selecting stocks with favorable characteristics and embracing strategic trading techniques, traders can harness the power of options to navigate market volatility with confidence. As 2015 unfolded, the stocks discussed in this guide shone as beacons of opportunity, guiding options traders towards potential riches. However, it’s imperative to remember that

Stocks bashed down, what to buy now? | The Edge Markets
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Best Stocks For Options Trading 2015

OPTIONS TRADING FOR BEGINNERS ? How To Trade Stock Options - YouTube
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