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TRADING OPTIONS ON EURO ZONE STOCKS COULD BE PROFITABLE IN THE NEAR FUTURE.

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TRADING OPTIONS ON EURO ZONE STOCKS COULD BE PROFITABLE IN THE NEAR FUTURE.

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THE COLLECTIVE EURO ZONE ECONOMY IS ROUGHLY EQUAL TO THAT OF THE UNITED STATES AS THE LARGEST IN THE WORLD. THE PROSPECT OF A BREAKUP OF THE EU AND A RESULTING ECONOMIC COLLAPSE HAS GIVEN STOCK INVESTORS AND TRADERS THE JITTERS FOR OVER A YEAR.

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CONFLICTING NEWS REPORTS FIRST PREDICT SOVEREIGN DEBT DEFAULT BY ANY OR ALL OF THE SO CALLED PIIGS NATIONS (PORTUGAL, ITALY, IRELAND, GREECE, AND SPAIN).

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THEN, REASSURING REMARKS BY A HIGH RANKING OFFICIAL OF THE EUROPEAN CENTRAL BANK, THE IMF, OR A HIGH RANKING GERMAN OFFICIAL, DRIVE HOPES AND EXPECTATIONS UP.

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THIS SCENARIO HAS MADE IT DIFFICULT TO TRADE EURO ZONE STOCKS.

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HOWEVER, TRADING OPTIONS ON EURO ZONE STOCKS OFFERS TRADERS A DEGREE OF PROTECTION OF INVESTMENT RISK AND A DEGREE OF LEVERAGE THAT COULD HELP DRIVE PROFITS NO MATTER HOW THE EURO ZONE DEBT CRISIS PLAYS OUT.

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WHEN TO BUY CALLS AND WHEN TO BUY PUTS IN TRADING OPTIONS ON EURO ZONE STOCKS IS PRETTY MUCH THE SAME AS WITH TRADING OPTIONS ON ANY EQUITIES, EVEN THOUGH THE EURO ZONE DEBT DILEMMA COULD HAVE EITHER OF TWO DRASTICALLY DIFFERENT OUTCOMES.

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WHEN THE MARKET CRASH AND WORST RECESSION IN 75 YEARS STARTED IN 2008 THE EU FOLLOWED THE US IN PROVIDING ECONOMIC STIMULUS IN ORDER TO HELP KEEP BUSINESSES ALIVE AND KEEP CREDIT FLOWING FROM BANKS.

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HOWEVER, SEVERAL EUROPEAN NATIONS EXPERIENCED SUBSTANTIAL UNEMPLOYMENT.

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THIS REQUIRED INCREASED UNEMPLOYMENT AND OTHER BENEFITS AT THE SAME TIME AS TAX COLLECTION SUFFERED.

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THIS REQUIRED INCREASED UNEMPLOYMENT AND OTHER BENEFITS AT THE SAME TIME AS TAX COLLECTION SUFFERED.

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GOVERNMENT BONDS IN GREECE, AS WELL AS ITALY AND THE REST OF THE PIIGS GROUP, DROPPED SIGNIFICANTLY IN VALUE AS GOVERNMENTS NEEDED TO PAY HIGHER AND HIGHER INTEREST RATES TO BORROW.

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IT CAME TO A POINT AT WHICH SOVEREIGN DEBT DEFAULT WAS NOT ONLY POSSIBLE IN GREECE BUT IT ITALY, THE THIRD LARGEST ECONOMY IN THE EU.

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ON TOP OF THIS THE VARIOUS ECONOMIES OF THE EU HAVE NOT EXPERIENCED THE GROWTH LEADERS HAD HOPED FOR.

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THIS FACT, BY ITSELF, HAS TENDED TO DRIVE DOWN PRICES OF EURO ZONE STOCKS.

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IN ORDER TO PROFIT FROM THE VOLATILITY INHERENT IN THIS EVOLVING STORY, TRADERS NEED TO KNOW HOW TO SELL OR HOW TO BUY STOCK OPTIONS ON EURO ZONE STOCKS.

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IN TRADING OPTIONS ON EURO ZONE STOCKS ON CAN TRADER WITH NYSE - EURO NEXT OR SIMPLY TRADE OPTIONS ON AMERICAN DEPOSITORY RECEIPTS OF EURO ZONE STOCKS.

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IN BUYING OPTIONS ON THESE STOCKS ON CAN BUY CALLS IN EXPECTATION OF A RISE IN STOCK PRICES OR BUY PUTS IN EXPECTATION OF A FALL IN STOCK PRICES.

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AS ALWAYS TRADERS NEED TO FOLLOW BOTH FUNDAMENTAL AND TECHNICAL ANALYSIS OF THE STOCK THEY CHOOSE TO TRADE.

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TO A DEGREE TRADING OPTIONS ON EURO ZONE STOCKS IN EURO OPTIONS TRADING AS THESE STOCKS ARE DENOMINATED IN EUROS.

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HOWEVER, A LOWER PRICED EURO MAY ACTUALLY TURN OUT TO BE BENEFICIAL FOR MANY EUROPEAN COMPANIES AS IT WILL MAKE THEIR EXPORTS MORE COMPETITIVE.

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FOR MORE INSIGHTS AND USEFUL INFORMATION REGARDING OPTIONS AND OPTIONS TRADING, VISIT WWW.OPTIONS-TRADING-EDUCATION.COM.