Join many other successful people who invest regularly and make profits. A large amount of information must be processed before an informed trading decision can be arrived at. Hence, it is always advisable to buy during the downsides of the market. If MER was trading at 65 when the strike price was 60, we can say that the option is in the money by $5. For Call options, if the price of the underlying asset is below the strike price of the option then it is "out of the money," when the price of the asset crosses above the strike price it is called, "in the money." This too works the opposite way for Put options. So becoming a successful options trader is no mean easy task. Again, there is no intrinsic value for an ATM option, just the time value. Single payment option trading converts your option to cash when your particular option trade has been successful thus giving you a payout for your trade. Just as ones returns can be large, so too can the losses leverage. "Mar" stands for March, so this option will expire on the third Friday of March 2006, which is next week. To conclude, options provide quite a bit flexibility and allow you to greatly increase your gains if used properly while at the same time lowering your risk in the trade. So becoming a successful options trader is no mean easy task. We will go on to discuss the many different types of options strategies that one could leverage for their specific scenario. An advantage of the traditional options is that they have lower premiums than single payment option trading. There is a lot of information available on the web regarding options and the development of online brokerages. Another way to participate options buying is through the use of a combination of long and short positions or a "spread." An option spread is a hedged trade that can reduce risk while at the same time limiting gains. The stock options are bought at the strike price or the grant price that is discounted. The majority of all options traded are American style, and US equity options are all American style. A broker involved in Forex option trading has traditional options that allow the right to purchase something from the option seller at a specific time and price. For Call options, if the price of the underlying asset is below the strike price of the option then it is "out of the money," when the price of the asset crosses above the strike price it is called, "in the money." This too works the opposite way for Put options. To conclude, options provide quite a bit flexibility and allow you to greatly increase your gains if used properly while at the same time lowering your risk in the trade. Just as ones returns can be large, so too can the losses leverage. Also, they are the only support that allows you to trade directly in stock exchange as they are registered and carry the required permission from the government. There are two types of options, which are called puts and calls. These represent price and time and therefore we can say that the price of an option is derived by adding up the intrinsic value and time value of the option. There is a lot of information available on the web regarding options and the development of online brokerages. Basically, trading involves buying or selling of stocks and securing profits according to the market conditions. Thus, in effect, reflects the sound market fundamentals of the trading economy and real effect that the online trading has on stock market. Obviously, the profits can be secured only via selling at better prices than the purchase rate. Though time is the most important factor in trading stock options, the closer the options are to expiration, traders are well advised to buy more time before expiration than needed. Options also help the investor to purchase stock at a lower price and to benefit from a stock prices rise or fall without owing the stock or selling it outright. The value of Call options increase as the value of its underlying asset increases. Options trading: options trading are another category of stock trading options that seeks for future transaction. There are certain vital aspects that come into the picture to play the important role while making the transition from stocks to trading stock options. Option trading is more complicated than stock trading because traders must choose from many variables besides the direction they believe the market will move.