Recent Commentaries tagged (introduction)
Why Trade Options: Profits and Risk Reduction
Are you an investor who has not yet learned about the risk-reducing properties of options and how adopting conservative strategies can preserve the value of your portfolio?If not, that's a shame because if you had been using a very conservative option strategy - collars - to protect the value...
What Is An Option?
I love trading options. My goal is to interest you in using options to make your investing more enjoyable, more profitable, and less risky. I’m not trying to sell newsletter subscriptions or encourage you to buy costly software. This blog is for options education and discussion. If want to know...
Can You Make Money With Options?
In a forum I frequent, I recently came across this innocent sounding question: "Can anyone make money consistently when trading options?" I don't know if the poster was thinking about learning to trade options and wanted an opinion as to his prospects, or whether he's been unsuccessful and wants...
Options Education: Use Your Time Efficiently
I've been reading a variety of blogs and have come across some interesting ideas that are applicable to my world - that of an options investor/trader. One such post (a guest post, written by Ramit) warns readers that most people waste too much time by focusing on items that may seem to be...
Buy, Hold and Sell. Is That All There Is?
Jared at Condor Options eloquently expressed an opinion that I share.Because he makes it sound so obvious, I want readers of this blog to benefit from the comment: "Although the investing public seem to have little tolerance these days for anything that smacks of financial complexity, the simple...
Choosing An Appropriate Strategy II
Choosing An Appropriate Strategy, Continued An introduction to the idea of selecting an investment method when using options was recently posted, and I suggested a few of the options strategies that I trade.The first one mentioned is covered call writing. When you write (sell) a call option, you...
Before You Make Your First Options trade
It's understandable that you are anxious about using options.Maybe a friend told you how much money he/she has made with options, making you anxious to get started.Or perhaps, the term 'options' makes you anxious because of some horror stories you may have heard. The truth is that options are...
Choosing an Appropriate Option Strategy
Introduction to option trading Your goal is to make money when using options and to do that, you must make some trades.The trades cannot be made randomly, and obviously, some thought must be given to which specific options to buy and/or sell. That's where choosing a specific option strategy...
Options Education For The Individual Investor
How does the individual investor/trader learn about options?Many traditional brokers make no effort to help clients.Most financial columnists (with few exceptions) who write about the stock market, avoid options like the plague.Financial planners either don't understand how options work, or...
Comfort Zone
Here’s part of my investment philosophy (You can read more of it here.) When initiating a new position most investors recognize the importance of placing a trade that they believe will produce a profit. Those who understand the importance of managing risk also understand the risk required to...
Recommended option Strategies
When I discuss option strategies on this blog, the emphasis will be on making money and managing risk. The following are the methods I recommend for investors who already understand how options work.For rookies, I recommend the same strategies, but it's important not to begin trading any of...