When the chairman of the Federal Reserve said that the Fed was going to phase out its stimulus program stocks fell. Then everyone seems to have remembered that Mr. Bernanke said that the Fed would phase out its stimulus program based on a continued economic recovery and stocks rose again. Given the uncertainty that often drives the market, options trading on the American economic recovery may be both more profitable and safer than direct investment. Options trading on the American economic recovery need not be limited to stocks. Bonds will be affected as interest rates rise and the dollar will likely continue to rise in value compared to foreign currencies as interest rates go up. Oil will fall as valued in dollars although it will become more expensive in countries whose currencies fall in relation to the dollar. Profitable options strategies for options trading on an American economic recovery could include trading options on stocks, commodities, and interest rates as well as Forex options trading. Stock Options, US and Foreign Both long term investors and day traders engage in stock option trading. In each case stock option trading allows one to hedge investment risk and provides leverage of investment/trading capital. A long term investor will buy calls to lock in opportunity on a promising investment. Or he may buy puts in order to protect gains in a rapidly rising stock. The long term investor hopes to get in and out of a stock with handsome profits but will typically hold for the long term. On the other hand a day trader in stock option trading is looking for short term profits that stem from market fluctuation. Stock options trading on the American economic recovery can involve both calls and puts as the market moves forward and corrects along the way. US economic recovery and the cessation of the Fed stimulus program will likely drive up interest rates and the value of the US dollar. This may be useful to Japan and the EU as well as China where an economic downturn is in the works. Stock options may be a useful way to profit from fluctuations in foreign markets caused by the dollar’s rise.

1. Options Trading on the American
Economic Recovery
By: www.Options-Trading-Education.com

2. When the chairman of the Federal
Reserve said that the Fed was going
to phase out its stimulus program
stocks fell. Then everyone seems to
have remembered that Mr. Bernanke
said that the Fed would phase out its
stimulus program based on a
continued economic recovery and
stocks rose again.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

3. Given the uncertainty that often
drives the market, options trading on
the American economic recovery may
be both more profitable and safer
than direct investment.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

4. Options trading on the American
economic recovery need not be
limited to stocks. Bonds will be
affected as interest rates rise and the
dollar will likely continue to rise in
value compared to foreign currencies
as interest rates go up.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

5. Oil will fall as valued in dollars
although it will become more
expensive in countries whose
currencies fall in relation to the
dollar.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

6. Profitable options strategies for
options trading on an American
economic recovery could include
trading options on
stocks, commodities, and interest
rates as well as Forex options trading.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

7. Stock Options, US and Foreign
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

8. Both long term investors and day
traders engage in stock option
trading. In each case stock option
trading allows one to hedge
investment risk and provides leverage
of investment/trading capital.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

9. A long term investor will buy calls to
lock in opportunity on a promising
investment. Or he may buy puts in
order to protect gains in a rapidly
rising stock.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

10. The long term investor hopes to get
in and out of a stock with handsome
profits but will typically hold for the
long term. On the other hand a day
trader in stock option trading is
looking for short term profits that
stem from market fluctuation.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

11. Stock options trading on the
American economic recovery can
involve both calls and puts as the
market moves forward and corrects
along the way.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

12. US economic recovery and the
cessation of the Fed stimulus
program will likely drive up interest
rates and the value of the US dollar.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

13. This may be useful to Japan and the
EU as well as China where an
economic downturn is in the works.
Stock options may be a useful way to
profit from fluctuations in foreign
markets caused by the dollar’s rise.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

14. Interest Rate Options
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

15. The Chicago Board Options Exchange
(CBOE) offers interest rate option
trading. CBOE describes interest rate
options as “European-style, cash-
settled options on the yield of U.S.
Treasury securities.” This is one of the
kinds of options trading that deals
solely in projected interest rates.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

16. These options trade in U.S. Treasury
bills with short, medium, and long
term rates. Options trading terms are
the same in trading interest rates as
in other options trading.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

17. With interest rates likely to rise
steadily with the gradual phase out of
the Fed stimulus program, interest
rate options trading on the American
economic recovery may be
worthwhile.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

18. Foreign Currency Options Trading
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

19. Imagine interest rates going up a few
percent in the USA and the dollar
back at 1985 levels versus foreign
currencies. Then consider calls on the
dollar with the Euro, Yen, GBP, or
Yuan.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/

20. Options trading on the American
economic recovery may have as much
to do with weakening foreign
currencies as with the rise of the US
dollar.
By: www.options-trading-education.com/11833/options-trading-on-the-american-
economic-recovery/