http://www.Options-Trading-Education.com - Trading Japanese Stock Options - Trading Japanese stock options may be one bright spot in the current dismal investment picture. As a virtual footnote to the financial news Japan expects to see two percent growth in its economy in 2012 versus a third of a percent this year. The financial and investment world has focused on the deteriorating sovereign debt crisis in Europe and the Capital Hill Comedy in which congress cannot come to grips with the US national debt. Meanwhile Japan has made progress in recovery from the worst earthquake and tsunami in its history. The result of the initial devastation in Japan was that nuclear power plants went out of operation. The news carried stories about possible nuclear meltdown and contamination of water and food supplies. What was not covered to the same degree was the fact that forty percent of the power to the Tokyo Electric Company power grid was lost. This area is the primary industrial district of Japan. Not only was there a problem with rolling blackouts in japan, but supply chains throughout the world have felt the pinch. Now, as Japanese recovery is in the works, trading Japanese stock options could be profitable. How to buy stock options most easily on Japanese stocks is to pick those trading in the USA as American Depository Receipts. Many long term investors are, no doubt, looking at Japanese stocks as underpriced, when compared to forward looking earnings, the intrinsic value of these stocks. However, the post-earthquake, post tsunami Japanese industrial recovery is coming just as the global economic recovery is petering out. Here is where trading Japanese stock options, as opposed to buying Japanese stocks, comes into the picture. When we look, again, at the top stories of the day we see that the European Central Bank may need to put a cap on interest rates in order to avoid a financial disaster and renewed recession in Europe. Likewise, the perceived inability of the US congress to come to grips with necessary budget cuts and tax increases puts the US recovery in doubt. In regard to investing in the Japanese recovery all is not certain. Japan may just get its power grids back on line and industrial production up just in time for the second dip of a worldwide recession to reduce global demand. Such a scenario could well result in a much less impressive recovery and much less impressive performance of Japanese stocks. When to buy calls and when to buy puts will depend upon the belief of the trader as to whether the Japanese recovery or a faltering of the global picture will predominate with Japanese stocks. In trading Japanese stock options traders can limit their risks as the most the buyer of an options contract can lose is the price of the contract. Also when buying, in stock options trading, one only invests the price of the options contract, not the price of the stock.

2. TRADING JAPANESE STOCK OPTIONS MAY
BE ONE BRIGHT SPOT IN THE CURRENT
DISMAL INVESTMENT PICTURE.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

3. AS A VIRTUAL FOOTNOTE TO THE
FINANCIAL NEWS JAPAN EXPECTS TO SEE
TWO PERCENT GROWTH IN ITS ECONOMY
IN 2012 VERSUS A THIRD OF A PERCENT
THIS YEAR.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

4. THE FINANCIAL AND INVESTMENT WORLD
HAS FOCUSED ON THE DETERIORATING
SOVEREIGN DEBT CRISIS IN EUROPE AND
THE CAPITAL HILL COMEDY IN WHICH
CONGRESS CANNOT COME TO GRIPS WITH
THE US NATIONAL DEBT.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

5. MEANWHILE JAPAN HAS MADE PROGRESS
IN RECOVERY FROM THE WORST
EARTHQUAKE AND TSUNAMI IN ITS
HISTORY.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

6. THE RESULT OF THE INITIAL DEVASTATION
IN JAPAN WAS THAT NUCLEAR POWER
PLANTS WENT OUT OF OPERATION.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

7. THE NEWS CARRIED STORIES ABOUT
POSSIBLE NUCLEAR MELTDOWN AND
CONTAMINATION OF WATER AND FOOD
SUPPLIES.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

8. WHAT WAS NOT COVERED TO THE SAME
DEGREE WAS THE FACT THAT FORTY
PERCENT OF THE POWER TO THE TOKYO
ELECTRIC COMPANY POWER GRID WAS
LOST.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

9. THIS AREA IS THE PRIMARY INDUSTRIAL
DISTRICT OF JAPAN. NOT ONLY WAS THERE
A PROBLEM WITH ROLLING BLACKOUTS IN
JAPAN, BUT SUPPLY CHAINS THROUGHOUT
THE WORLD HAVE FELT THE PINCH.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

10. NOW, AS JAPANESE RECOVERY IS IN THE
WORKS, TRADING JAPANESE STOCK
OPTIONS COULD BE PROFITABLE.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

11. HOW TO BUY STOCK OPTIONS MOST
EASILY ON JAPANESE STOCKS IS TO PICK
THOSE TRADING IN THE USA AS AMERICAN
DEPOSITORY RECEIPTS.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

12. MANY LONG TERM INVESTORS ARE, NO
DOUBT, LOOKING AT JAPANESE STOCKS AS
UNDERPRICED, WHEN COMPARED TO
FORWARD LOOKING EARNINGS, THE
INTRINSIC VALUE OF THESE STOCKS.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

13. HOWEVER, THE POST-EARTHQUAKE, POST
TSUNAMI JAPANESE INDUSTRIAL
RECOVERY IS COMING JUST AS THE
GLOBAL ECONOMIC RECOVERY IS
PETERING OUT.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

14. HERE IS WHERE TRADING JAPANESE
STOCK OPTIONS, AS OPPOSED TO BUYING
JAPANESE STOCKS, COMES INTO THE
PICTURE.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

15. WHEN WE LOOK, AGAIN, AT THE TOP
STORIES OF THE DAY WE SEE THAT THE
EUROPEAN CENTRAL BANK MAY NEED TO
PUT A CAP ON INTEREST RATES IN ORDER
TO AVOID A FINANCIAL DISASTER AND
RENEWED RECESSION IN EUROPE.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

16. LIKEWISE, THE PERCEIVED INABILITY OF
THE US CONGRESS TO COME TO GRIPS
WITH NECESSARY BUDGET CUTS AND TAX
INCREASES PUTS THE US RECOVERY IN
DOUBT. IN REGARD TO INVESTING IN THE
JAPANESE RECOVERY ALL IS NOT CERTAIN.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

17. JAPAN MAY JUST GET ITS POWER GRIDS
BACK ON LINE AND INDUSTRIAL
PRODUCTION UP JUST IN TIME FOR THE
SECOND DIP OF A WORLDWIDE
RECESSION TO REDUCE GLOBAL DEMAND.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

18. SUCH A SCENARIO COULD WELL RESULT IN
A MUCH LESS IMPRESSIVE RECOVERY AND
MUCH LESS IMPRESSIVE PERFORMANCE
OF JAPANESE STOCKS.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

19. WHEN TO BUY CALLS AND WHEN TO BUY
PUTS WILL DEPEND UPON THE BELIEF OF
THE TRADER AS TO WHETHER THE
JAPANESE RECOVERY OR A FALTERING OF
THE GLOBAL PICTURE WILL PREDOMINATE
WITH JAPANESE STOCKS.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

20. IN TRADING JAPANESE STOCK OPTIONS
TRADERS CAN LIMIT THEIR RISKS AS THE
MOST THE BUYER OF AN OPTIONS
CONTRACT CAN LOSE IS THE PRICE OF THE
CONTRACT.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

21. ALSO WHEN BUYING, IN STOCK OPTIONS
TRADING, ONE ONLY INVESTS THE PRICE
OF THE OPTIONS CONTRACT, NOT THE
PRICE OF THE STOCK.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

22. THESE TWO FACTORS PROVIDE RISK
LIMITATION AS WELL AS INVESTMENT
LEVERAGE.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

23. ANOTHER FEATURE OF TRADING JAPANESE
STOCK OPTIONS IS THAT IT GIVES TRADERS
SOMETHING TO TRADE THAT IS NOT
PURELY A PLAY ON GLOBAL ECONOMIC
RECOVERY OR FAILURE OF THE SAME.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

24. THE OTHER FACTOR HERE IS THE
RECOVERY FROM THE TSUNAMI. THIS IS
PRETTY MUCH AN ASSURED THING.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

25. THE UNKNOWN IS HOW MUCH OF A
GLOBAL MARKET JAPAN WILL HAVE TO
SELL TO WHEN IT IS FULLY RECOVERED.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

26. AS ALWAYS HOW TO TRADE OPTIONS, ON
JAPANESE STOCKS, OR ANY EQUITIES, IS
TO FULLY RESEARCH FUNDAMENTALS OF
THE STOCK OR INDEX IN QUESTION AND
STUDIOUSLY FOLLOW TECHNICAL PRICING
PATTERNS ALONG THE WAY.
W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M

27. FOR MORE TIPS AND USEFUL
INFORMATION ABOUT TRADING OPTIONS
ON STOCKS, COMMODITIES, AND FUTURES
VISIT WWW.OPTIONS-TRADING-
EDUCATION.COM.