Index Options Trading

Index options trading is one way you may diversify your portfolio and protect it from swings in the market. Rather than trading options on particular stocks, this type of trading involves speculating on the performance of indexes, such as the S&P 500, the Dow Jones Industrial Average, and the NASDAQ 100. By purchasing put contracts, you can benefit when the performance of the markets is poor, isolating you from decreases in individual investments.

You can also benefit from these investments when the markets are performing well. You may find that call options provide you with good value, based on your belief about the future performance of the indexes. The strike price and length of the contracts you are interested in will determine whether or not they are sound investments.

Engaging in Index Options Trading

You may need to do considerable research to determine the value of the contracts because:

  • As with other financial investments, there is risk involved in trading index options
  • They may expire in-the-money causing you to lose out on the option premium
  • If you are not comfortable analyzing all the details of the market, you can still trade using the Optioneer system

Our unique system thoroughly analyzes market signals to predict the probability that your options will expire profitable to you. With our software helping you assess the risks, you can engage in disciplined trading. To learn more about how the Optioneer program can assist you in managing your investments, call us today at 800-845-2502 or contact us at info@optioneer.com.