Option Analysis

Option Analysis
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Options are the rights to buy or sell an asset at a specified price which can be exercised before the expiration date. The buyer will buy the asset at the specified price regardless of what the current price will be at that time. Options are transferable and they are available for a limited number of stocks usually in multiples of 100s and therefore not all stocks have options. There is a buyer and a seller.

There are two types of options call and put options. The buyer has a right to buy call options and sell put options. The buyer is not obligated to buy or sell but he has a right to do so. He can exercise that right or fail to exercise it. This right is valid for a time after which the buyer loses the right to exercise the call and put options at the specified price.
The seller has an obligation to buy call and sell put options. When a seller has sold an option he has an obligation to deliver the call option or take the put option at the specified price when the option is exercised by the buyer. The specified price is known as the strike price or exercise price. There are various strike prices available for each option which are above and below the current price.

The option analysis helps to determine the value of a stock depending on the price, volatility, market interest rates and the days until the expiration date. It will indicate whether the stock has been overpriced or underpriced helping you to make the right trading decision. You can buy options for undervalued stocks and sell them at a profit. Option analysis hedges you against any risks.

Option analysis software analyzes each stock against different option strategies to help you make trading decisions and manage your portfolio.  You can use the software to test what if scenarios of new strategies to help you make decisions of which stock options to exercise. They have real-time scanning which will scan real-time quotes, calculations, conversions, price changes, earnings, dividends, volatility indexes and much more. There are many option analysis strategies which you can use to make money in all stock market conditions whether the market is bearish or bullish. You can make profits whether the stock prices are going up or down either way or even when the price is still whether you are a new or experienced investor using the software which is easy to use.

You can do a thorough option analysis of historical and predicted information using charts, graphs and comparing different scenarios of stock strategies in a cross-section of stock exchanges before you can call your stock broker. The software can be used to check the account balance, download quotes and place orders. You will be able to check how the stocks will behave on different projected prices, the risks and return, the interest rates, days until the expiration date and the profit/loss results.

Last modified onTuesday, 02 April 2013 23:56
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