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TradeKing(TM) Among Select Group of Leading Online Brokerages to Offer Groundbreaking Fixed Return Options (FROs)
May 02, 2008 (08:05 AM EDT)
BOCA RATON, Fla., May 2 /PRNewswire/ -- A groundbreaking new investment vehicle called Fixed Return Options (FROs) will be made available to investors beginning May 8 at online discount broker TradeKing ( www.tradeking.com ). These binary options are a simpler way for investors to begin trading options without the confusing language and calculations typically associated with the options market. The FRO's unique "all or nothing" structure provides a straight-forward approach to options with a maximum risk of $100 per FRO contract. TradeKing CEO Don Montanaro is credited with playing a significant role in the initial conception and subsequent development of the product. Montanaro will ring the opening bell at the American Stock Exchange on May 8 in honor of his contribution as co-creator of the product.
"Several years ago, I started thinking about ways to make options trading less confusing and more accessible for investors," said Don Montanaro, CEO of TradeKing. "If people didn't have to learn a new language involving 'puts' and 'calls' perhaps they'd be more likely to take advantage of the benefits options can add to a portfolio. We created FROs to help investors try options trading with a simpler, regulated product that can work in up, down, sideways and turbulent markets, while limiting the profit and loss potential."
There are two kinds of fixed return options: Finish High and Finish Low options, each with a per-contract fixed return amount of $100. The maximum potential profit for long FROs is $100.00 per contract less the initial cost, while the maximum profit for short FROs is the premium received by the seller. The maximum potential loss for long FROs is the initial cost, while the maximum loss for short FROs is $100.00 per contract less the premium received. FROs are European style, cash-settled and are automatically exercised if in-the-money at expiration. They are initially being listed on the American Stock Exchange and are so far available on 20 widely held equities and exchange-traded-funds (ETFs).
To learn more about trading Fixed Return Options visit TradeKing and get started trading FROs by visiting http://www.tradeking.com/AdTrack/PNW0408WP0LP010/FRO .
Rated the top discount broker for the second consecutive year by SmartMoney Magazine ("Best Discount Broker" by SmartMoney 8/1/07, based: on Customer Service; Mutual Funds; Trading Tools; Research; Banking Amenities) (1), TradeKing, is a nationally licensed online broker dealer offering simple, low flat fees. (Please see https://www.tradeking.com/PrivateView/services/Services/commissions.tmpl for more details on trade commissions for low priced stock, bonds, mutual funds and other securities).
The TradeKing Web-based platform features powerful online equity, options and fixed-income trading tools including real-time portfolio information, advanced order entry, customized charting and alerts, free research and integrated news, stock, option and mutual fund screeners, volatility charts, a pricing probability calculator, enhanced option chains and interactive educational information. TradeKing also features innovative community networking capabilities to help connect like-minded traders for enhanced strategy development and information sharing. Go to the TradeKing Community for details. TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. Online trading system response and access times may vary due to market conditions, system performance, and other factors. Non-U.S. residents may be subject to country-specific restrictions. Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at http://content.tradeking.com/wiki/display/tkservice/Characteristics+and+Risks . Member FINRA/SIPC.
(1) SmartMoney is a joint publishing venture of Dow Jones & Company, Inc.
and Hearst Communications, Inc. All Rights Reserved Worldwide.
CONTACT: Sue Parente for TradeKing, +1-781-642-7788, firstname.lastname@example.org
Web site: http://www.tradeking.com/