There are numerous trading techniques to consider for each and every options trade, so Fred Oltarsh at Options Strategy Network details five of the ones he considers extremely vital for trying to put the percentages in the trader’s favor.
The key to trading options contracts successfully (individual stocks and futures as well) is to put the percentages in your favor. This involves numerous trading techniques discussed in the Options Strategy Network options guide. Briefly, one should consider the following factors for each and every trade: 1) liquidity or the cost to initiate and liquidate the position, 2) implied volatility or the relative value of the particular option one is trading, 3) having a pre-designated point of liquidation, 4) risk/reward ratio after commissions and slippage and 5) diversification of strategies and trades.
Each analysis described above increases the likelihood of success of an individual trade. Examining the liquidity of the market that one is about to trade is the first step to increasing levels of productivity. If one is buying a stock for a long-term hold, the implications of liquidity are not as great for that trader as for the trader who intends to buy and sell stock frequently. If one is day trading, whether stocks or options, even a bid/ask spread of a penny on a low priced stock, has an impact on the bottom line. The best way to analyze it is to quickly determine the difference of the bid/ask spread as a percentage of the value of the instrument traded. Then determine what that value is per one thousand dollars invested. If the number sounds high, it’s probably worth staying away from that trade.
Best Low Price Stocks To Invest In Right Now: Ashford Hospitality Trust Inc(AHT)
- [By Lisa Levin] Related AHT 25 Biggest Mid-Day Gainers For Friday Mid-Day Market Update: Hortonworks Drops Following Weak Results; Freshpet Shares Spike Higher Ashford Hospitality Trust's (AHT) CEO Montgomery Bennet on Q2 2016 Results – Earnings Call Transcript (Seeking Alpha)
Related NEWS Mid-Morning Market Update: Markets Open Higher; Micron To Lower Jobs Mid-Morning Market Update: Markets Open Lower; Broadcom Profit Beats Expectations NewStar Financial's (NEWS) CEO Tim Conway on Q2 2016 Results – Earnings Call Transcript (Seeking Alpha)
Best Low Price Stocks To Invest In Right Now: Virtus Investment Partners Inc.(VRTS)
- [By Lisa Levin]
Shares of Virtus Investment Partners Inc (NASDAQ: VRTS) got a boost, shooting up 19 percent to $111.05 following Q3 results. Virtus Investment posted Q3 earnings of $1.64 per share on revenue of $82.3 million.
Best Low Price Stocks To Invest In Right Now: LG Display Co., Ltd.(LPL)
- [By Peter Graham]
A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:
- [By Anders Bylund, Chuck Saletta, and Brian Feroldi]
According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.
Best Low Price Stocks To Invest In Right Now: Catabasis Pharmaceuticals, Inc.(CATB)
- [By Lisa Levin]
Shares of Catabasis Pharmaceuticals Inc (NASDAQ: CATB) got a boost, shooting up 46 percent to $6.52. Catabasis Pharmaceuticals and Sarepta Therapeutics Inc (NASDAQ: SRPT) reported a joint research collaboration in Duchenne Muscular Dystrophy.
Best Low Price Stocks To Invest In Right Now: Dover Corporation(DOV)
- [By Jon C. Ogg]
Dover Corp. (NYSE: DOV) was at $75.19 at the end of 2016 and the firm has a $85.00 price objective. This is 13% in implied upside for Dover, before considering its 2.3% dividend yield.