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Why Trade Index
Options?
- Less uncertainty: The key reason we trade
index options rather than options on individual stocks is that price
and volume fluctuations are much higher for a particular stock than
they are for an index. Stocks often react wildly to unpredictable
events, such as news, rumors, earnings reports, and others. By
tailoring our trade indicators to the trading of index options on the
NASDAQ 100, S&P 100 and the S&P 500, we have greatly lowered the
degree of uncertainty that is associated with the trading of individual
stock options.
- Lower Capital Investment: You are buying into
the index directly as easily as you would a stock. You end up with low
commissions, and there is no need to worry about loads or other hidden
fees!
- Reduced volatility: Indexes are much less
volatile than their constituent stocks. Because an index is comprised
of many individual stocks, a sudden volatile event on an individual
stock (news, earnings, up-/downgrades, etc.) will not impact the index
to the same degree that it impacts the stock itself. Instead, the
presence of the many other stocks in the index will tend to smooth out
or buffer such impacts, making price movements in the index much less
pronounced and volatile.
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Just one winning trade
could pay for your membership for years to come!
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"Options Trading Systems" |
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