Stock options are important to many well-rounded traders. They can be used as a hedge against a declining stock market to limit losses, or to generate recurring income. Options can also be used speculatively. With such relevance, it’s important for traders to understand what stock options are, and how to use them. By reading the right blogs, and applying the information they teach, options can be a lucrative possibility for traders. Here’s a list some of the best stock options blogs around.
What’s the difference between stocks and stock options?
Stocks are shares of ownership in a company, and stock options are a derivative of stocks. Stock options are contracts, which give a party the right, but not the obligation, to buy or sell a stock at an agreed-upon price from another party, before or until a certain date. Options contracts exist for various types of assets, but stock options are the most common type of option.
Stock options can be either short-term or long-term, depending on the terms of the contract. However, the blogs listed here focus on short-term options, because they are much more prevalent. Traders prefer short-term options due to the high premiums associated with keeping a stock option for a longer period of time.
Information based blogs
Seeking Alpha is a great website that covers all aspects related to options and stocks trading. This website provides users with access to articles about all features of options and stock trading. These articles are detailed and since they are written by professionals it ensures they are trustworthy.
Terry’s Tips is a great blog for someone who wants a more individually focused stock option blog. Terry focuses on individual stock options and gives his personal opinion if they are a good investment, as well as offering a general background of options trading.
Blogs about general trading
Wandering Trader is one of the most interesting and fun trading blogs. It provides the reader with insight into how to make a living through options and stock trading. It is a professional trader’s insight into the steps he took to become the professional trader that he is today.
Individual articles & blog posts
Individual blog posts dedicated to the topic of just short-term stocks/options are few and far in between. However, there are many standalone articles and posts which can be very useful for an options trader.
Nitin Bhatia has a great post called Short Term Trading – How Can I Generate Regular Income that deals specifically with short-term trading. It explains short-term trading by explaining in detail all of the necessary steps to have a successful trading strategy.
Salvador Briggman is a blogger whose article Short-term vs. Long-term Stock Investing compares and highlights the differences between short-term and long-term trading. By understanding the key differences between long and short-term stocks, traders formulate a better approach to taking the short-term market head-on. It also allows provides traders with enough insight to ensure they are able to decide whether short-term or long-term trading suits their needs.
Whatever you are looking for in short-term trading, doing as much research as possible can always help you get a leg up on the rest of the trading world. It’s your money, so make sure you take care of it to the best of your abilities. These blogs have the information needed to send you in the right direction towards successful short-term trading.