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Contact Kara Crawford at kara@traderplanet.com for further details.en-ushttp://www.traderplanet.com/commentaries/view/16360-my_story_and_risk_managementhttp://www.traderplanet.com/commentaries/view/16360-my_story_and_risk_management<p><span>I repeatedly write about the importance of risk management when trading options.  Believe me when I tell you that I understand how much most of you are tired of reading about it.  How can I know that?  Because I've been in your shoes.</span></p><p><span>I firmly believe that if you don't pay much attention to what can go wrong and how much can be lost from a single position , chances are very good that you will encounter an unexpected market move that will take your breath away.  If you survived the turmoils of ...</span></p><a href='http://www.traderplanet.com/commentaries/view/16360-my_story_and_risk_management'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/624/?a=1067><img src=http://www.traderplanet.com/themes/trader_plain/gfx/dinapoli.gif border=0 /></a></p> Mark WolfingerMark WolfingerWed, 12 Aug 2009 10:01:00 +0000http://www.traderplanet.com/commentaries/view/16221-is_current_value_of_a_long_term_investment_importanthttp://www.traderplanet.com/commentaries/view/16221-is_current_value_of_a_long_term_investment_important<p><span>Mike, at The Oblivious Investor had an interesting post on 'sunk costs.'</span></p><p><span>I joined in the commentary, and Mike has graciously given permission for me to use those comments here.</span></p><p><span>***</span></p><p><span>For somebody with a long investment time line does itreally matter if the investment is performing poorly right now?Wouldn’t I actually benefit by being able to purchase shares at a lowerprice?</span><span><br /></span></p><p><span>Dave C</span><span><br /></span></p><p><span>***</span></p><span>Yes, you can buy shares and pay a lower price.</span><p>But that is not relevant. You can buy those shares at today’s price– ev...</p><a href='http://www.traderplanet.com/commentaries/view/16221-is_current_value_of_a_long_term_investment_important'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/744/?a=1072><img src=http://www.traderplanet.com/themes/trader_plain/gfx/firman.gif border=0 /></a></p> Mark WolfingerMark WolfingerTue, 11 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/16061-learning_to_trade_optionshttp://www.traderplanet.com/commentaries/view/16061-learning_to_trade_options<p><span>In your attempt to search the Internet, looking for ideas on how to successfully begin trading options, you landed here.  You are in the right place.</span></p><p><span>Here are some tips on how to get started.  Some may seem obvious, but the purpose of this post is to save the options rookie from unnecessary grief:</span></p><p><span>1) It's easy to understand what an option is.  But that does not mean it's easy to begin trading options with any chance of earning a profit.</span></p><p><span>2) Do not believe it when anyone tells you that you will ma...</span></p><a href='http://www.traderplanet.com/commentaries/view/16061-learning_to_trade_options'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/624/?a=1067><img src=http://www.traderplanet.com/themes/trader_plain/gfx/dinapoli.gif border=0 /></a></p> Mark WolfingerMark WolfingerMon, 10 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/16011-vix_graph_august_7_2009http://www.traderplanet.com/commentaries/view/16011-vix_graph_august_7_2009<p>090807<br /></p><p><span>The market marches higher and VIX is gradually moving lower.</span></p><a href='http://www.traderplanet.com/commentaries/view/16011-vix_graph_august_7_2009'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/834/?a=1070><img src=http://www.traderplanet.com/themes/trader_plain/gfx/wyckoff.gif border=0 /></a></p> Mark WolfingerMark WolfingerSat, 08 Aug 2009 20:26:32 +0000http://www.traderplanet.com/commentaries/view/16004-buying_puts_vs_selling_calls_an_explanation_for_rookieshttp://www.traderplanet.com/commentaries/view/16004-buying_puts_vs_selling_calls_an_explanation_for_rookies<p><span>I received an e-mail question from a reader who is first learning about options.  His question is very basic, and I'm glad he asked the question.  It's important for everyone to understand the most basic concepts of options and how to use them.  For those of you who find this question too elementary, put yourself in his place.  If the answer to this question is not crystal clear, how can he understand how options work, and go on to use them successfully?  The most basic questions are the ones...</span></p><a href='http://www.traderplanet.com/commentaries/view/16004-buying_puts_vs_selling_calls_an_explanation_for_rookies'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/815/?a=1071><img src=http://www.traderplanet.com/themes/trader_plain/gfx/murphy.gif border=0 /></a></p> Mark WolfingerMark WolfingerSat, 08 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/15890-using_options_to_create_a_steady_income_streamhttp://www.traderplanet.com/commentaries/view/15890-using_options_to_create_a_steady_income_stream<p><span><span>Mark,</span></span></p><p><span>Will there be a follow up to your Rookie's Guide To Options book thatwill go over more advanced concepts? I'm thinking to describe aboutvarious issues in managing a monthly income portfolio.</span></p><p><span>Thanks,</span><span><span>Art</span></span></p><hr /><div> Your Browser doesnot supportiframes.</div><hr /><p><span>Thanks Art for leaving the above comment/question.</span></p><p><span>Writing a book is a big project and I have no plans for another at this time.</span></p><strong><span>Monthly Income</span></strong><br /><p><span><span><strong>Warning 1: Despite the hype that you find all over the Internet, a steadyincome is not guaranteed.  Instant riches...</strong></span></span></p><a href='http://www.traderplanet.com/commentaries/view/15890-using_options_to_create_a_steady_income_stream'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/815/?a=1071><img src=http://www.traderplanet.com/themes/trader_plain/gfx/murphy.gif border=0 /></a></p> Mark WolfingerMark WolfingerFri, 07 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/15736-avoiding_early_assignmenthttp://www.traderplanet.com/commentaries/view/15736-avoiding_early_assignment<p><span>This video states that 'it costs you nothing' to short stock.  Be aware that some brokers charge a fee when you hold a short stock position - and if the stock is difficult to borrow, the fee can be very stiff.</span></p><a href='http://www.traderplanet.com/commentaries/view/15736-avoiding_early_assignment'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/815/?a=1071><img src=http://www.traderplanet.com/themes/trader_plain/gfx/murphy.gif border=0 /></a></p> Mark WolfingerMark WolfingerThu, 06 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/15520-being_assigned_an_exerice_notice_any_problemshttp://www.traderplanet.com/commentaries/view/15520-being_assigned_an_exerice_notice_any_problems<p><span>Yesterday's post discussed what happens when you are assigned an exercise notice.<span>My premise is that it's seldom a problem.I'd appreciate hearing some of your experiences to see if my perception of the world agrees with your experiences</span>:</span></p><p><span>[I'm still trying to find the right polling website to use.If you have suggestions, or if you want to elaborate on replies, please comment.]</span></p><p><br /></p><div>Click Here for PollOnline Survey<br /> | Website Polls<br /> | Email Marketing<br /><br /> | Crowdsourcing<br />View MicroPoll</div><p><br /></p><p><br /></p><div>Click Here for PollOnline...</div><a href='http://www.traderplanet.com/commentaries/view/15520-being_assigned_an_exerice_notice_any_problems'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/624/?a=1067><img src=http://www.traderplanet.com/themes/trader_plain/gfx/dinapoli.gif border=0 /></a></p> Mark WolfingerMark WolfingerWed, 05 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/15521-q_a_trading_options_exercise_and_assignmenthttp://www.traderplanet.com/commentaries/view/15521-q_a_trading_options_exercise_and_assignment<p><span>Via email:<strong> "Would like more on the perils of assignment."</strong></span></p><p><span>One of the recurring topics I encounter is anew option trader's concern about being assigned an exercise notice on some option he/she has sold.</span></p><p><span>There are situations in which being assigned results in an unhappy ending, but they are few are far between.</span></p><p><span>Let's begin with simple definitions for option rookies:</span></p><blockquote><p><span>Exercise: The process by which an option owner does what the option contract allows.The call owner buys 100 shares of the underlying a...</span></p></blockquote><a href='http://www.traderplanet.com/commentaries/view/15521-q_a_trading_options_exercise_and_assignment'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/834/?a=1070><img src=http://www.traderplanet.com/themes/trader_plain/gfx/wyckoff.gif border=0 /></a></p> Mark WolfingerMark WolfingerTue, 04 Aug 2009 10:00:00 +0000http://www.traderplanet.com/commentaries/view/15522-options_trading_selecting_the_expiration_date_iihttp://www.traderplanet.com/commentaries/view/15522-options_trading_selecting_the_expiration_date_ii<p><span>I apologize for the mistakenly published earlier posts. The weekend was just too busy.</span></p><div> Your Browser doesnot supportiframes.</div><hr /><p><span>Part Iset the background.</span><span>Now it's time to consider which factors areimportant to the trader and t</span><span>his time I'll answer the question: Whenestablishing a positive theta, negative gamma spread </span> <span>is there a goodmethod for choosing the best time frame - number of days before the options expire? </span></p><p><span>The short answer is 'no.'Once again, this commentary is based on my point of view.The...</span></p><a href='http://www.traderplanet.com/commentaries/view/15522-options_trading_selecting_the_expiration_date_ii'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/832/?a=1073><img src=http://www.traderplanet.com/themes/trader_plain/gfx/jobman.gif border=0 /></a></p> Mark WolfingerMark WolfingerMon, 03 Aug 2009 15:25:40 +0000http://www.traderplanet.com/commentaries/view/15523-cboe_volatility_index_vix_datahttp://www.traderplanet.com/commentaries/view/15523-cboe_volatility_index_vix_data<p><span>For years, I've been publishing, and updating weekly, a graph of VIX closing prices at my website.The current graph represents data from Jan 2007 through the present time.<br /></span></p><p><span>I find that most option traders are interested in this data because it allows them to get a sense of where VIX is, compared with where it has been.Keep in mind that this index measures the implied volatility of a bunch of SPX option series, and is an indication of where 'the market' expects the implied volatility level will ...</span></p><a href='http://www.traderplanet.com/commentaries/view/15523-cboe_volatility_index_vix_data'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/834/?a=1070><img src=http://www.traderplanet.com/themes/trader_plain/gfx/wyckoff.gif border=0 /></a></p> Mark WolfingerMark WolfingerSat, 01 Aug 2009 17:31:37 +0000http://www.traderplanet.com/commentaries/view/15524-q_a_timing_the_markethttp://www.traderplanet.com/commentaries/view/15524-q_a_timing_the_market<p><span> <span><span> <span><strong><span>Updated two hours later</span></strong><br /></span></span></span></span></p><p><span><span><span><span><span>Mark, </span></span></span></span> </span><span> <span><span><span><br /></span></span></span></span></p><p><span><span><span><span>On timing- here's a simple style I've had good luck with: When you"see" a trade, initially execute and things don't start happening ashoped for then it's time for a very simple adjustment: Get out!</span></span></span></span></p> <span><span><span><span>I'd be really interested to get your opinion on this admittedlyfrequent trader's paradigm but from whereI sit it looks like many "adjustments" are a stubborn refusal to bewrong. And ironically, v-e-r-y smart guys are particularly prone tothis ill fated thinking.</span></span></span></span><p><span><br /></span></p><p><span><span><span><span>In m...</span></span></span></span></p><a href='http://www.traderplanet.com/commentaries/view/15524-q_a_timing_the_market'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/815/?a=1071><img src=http://www.traderplanet.com/themes/trader_plain/gfx/murphy.gif border=0 /></a></p> Mark WolfingerMark WolfingerSat, 01 Aug 2009 16:16:03 +0000http://www.traderplanet.com/commentaries/view/7847-rism_management_on_a_larger_scalehttp://www.traderplanet.com/commentaries/view/7847-rism_management_on_a_larger_scale<p><span >I discuss the importance of risk management so frequently that I'm sure some readers are tired of hearing about it.On the other hand, I get enough e-mails from readers who thank me for spending so much time on that topic.</span></p><p><span >When I write about risk, I'm looking at it from the point of view of taking care of a current position or portfolio.The goal is to be certain as you can be that no significant loss occurs, and that your long-term survival as an investor or trader is not threatened. </span></p><p><span >I just cam...</span></p><a href='http://www.traderplanet.com/commentaries/view/7847-rism_management_on_a_larger_scale'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/744/?a=1072><img src=http://www.traderplanet.com/themes/trader_plain/gfx/firman.gif border=0 /></a></p> Mark WolfingerMark WolfingerWed, 08 Jul 2009 15:57:41 +0000http://www.traderplanet.com/commentaries/view/7846-general_motures_and_failurehttp://www.traderplanet.com/commentaries/view/7846-general_motures_and_failure<p>In response to a couple of blog comments, this is my reply.</p><p>There's nothing we can do.</p><p>So many are responsible for the GM disaster, but primarily I blame the company and those who worked there.</p><p>GM executives refused to adapt to reality, and with the survival of the fittest came the destruction of the obsolete.</p><p>They ignored making the improvements that buyers wanted.They successfully beat down new laws that would have demanded increased gas mileage for the cars.That was a Pyrrhic victory.They fail...</p><a href='http://www.traderplanet.com/commentaries/view/7846-general_motures_and_failure'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/815/?a=1071><img src=http://www.traderplanet.com/themes/trader_plain/gfx/murphy.gif border=0 /></a></p> Mark WolfingerMark WolfingerThu, 18 Jun 2009 13:48:16 +0000http://www.traderplanet.com/commentaries/view/7845-my_philosophy_of_options_trading_iihttp://www.traderplanet.com/commentaries/view/7845-my_philosophy_of_options_trading_ii<p><span >Part I</span></p><p><span >Part II. It's Your Money.Protect It.</span></p><p><span >This topic is one I take very seriously and I admit that I have difficulty convincing people of the truth of the following statement:</span></p><p><span >When you own a position, unless there is something very unusual about the current option prices , the current value of the position represents your current stake.In other words, the price at which you can exit the trade right now , represents your money.</span><span >If you have a profit, that profit is yours.It does not belong to 'th...</span></p><a href='http://www.traderplanet.com/commentaries/view/7845-my_philosophy_of_options_trading_ii'>Read More at TraderPlanet.com &#187;</a><p align=center><a href=http://www.traderplanet.com/tradertube/index/834/?a=1070><img src=http://www.traderplanet.com/themes/trader_plain/gfx/wyckoff.gif border=0 /></a></p> Mark WolfingerMark WolfingerMon, 15 Jun 2009 16:55:31 +0000