Frequently Asked Questions

FAQ question mark revolving



Can I buy options/stocks online without a personal broker?

There are a couple of online do-it-yourself brokerages. Robin Hood https://robinhood.com/ gives you the ability to start free and buy stock in whatever company you want for free. TastyWorks https://tastyworks.com/index.html is primarily a comprehensive options brokerage; sign up is free and to open a trade is $10 maximum; close the trade is free.

Can I have multiple brokerage accounts?

Yes. You can, and should have multiple brokerage accounts. Because all brokers are now effectively at zero commissions, there’s no reason why you can’t have multiple accounts to try out different platforms and different technologies

Does opening a brokerage account affect my credit score?

No. When you open  a brokerage account, your intention is to invest money. Credit scores are impacted when your intention is to borrow money.

Is it better to close options before expiration?

You have to close (get rid of) options before expiration! Once the expiration date comes up (3rd Friday of month) for a contract, you can’t do anything with it – buy or sell.

What is a derivative?

Options are derivatives – meaning they “derive” their value from the underlying stock. An option contract and underlying stock are linked.

How many shares of stock in one option contract?

One option contract equals 100 shares of stock.

What does Implied Volatility tell you?

IV basically tells you what the market expects the stock to do over the next year, month, 30 days, etc. How much people expect the stock to move based on expectations. The implied (or expected) volume in the underlying stock moving forward.

What is the secret to selecting an underlying stock?

Select an underlying stock that you like and wouldn’t mind giving your credit card to.

Is insider buying/selling information available?

It seems logical that if insiders of a company are buying/selling large quantities of their own stock, they must know something we don’t know. “Insider Weekends” provides complete details weekly of large stock buying/selling by company insiders: https://www.insidearbitrage.com/introduction-to-insider-trading/

Can a finance Rookie like me, learn to trade Options?

Absolutely !

Learn how right here! (I teach this Adult Education course at a Las Vegas college). Step-by-step easy lessons to guide you in making extra money trading stock options online. For Moms who can run a side hustle with everything else!

Can I make money trading stock options part time?

Yes! I had a full time job/business and all the other things Moms handle, and supplemented my income with just a little extra time here and there.

How much money do I need to get started trading options?

I started with $500. Most brokerages will not let you trade options unless you have a Margin Account of several thousand dollars. http://TastyWorks.com specializes in options and you can place an order for any amount of a debit option, as long as you have money in your account to cover the transaction.

How do I choose an underlying stock and option?

Each week I write about how to pick an option – Free option trading picks and tips, with a touch of humor to explore behind the scenes underlying stock tips. FREE option trading tips, facts and analysis for savvy Mom option traders to overpower the Wall Street bull and make money!

Just click on the link below to take a look at this week’s “Hot Option Pick & Tip” and if you’d like to receive great behind-the-scenes tips each week, just fill in the blanks to let me know where to send them :

We’re Moms Who Trade Options to make money,

Barbhttp://www.MomsMakeMoneyTradingOptions.com/The-Doctor