Newcomers to the options world are usually eager to learn all about options, but arrive on the scene hindered by misconceptions gathered in chat rooms or online forums. It’s difficult for novices to ignore what they...
Read MoreIt’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...
Read MoreHi Mark, I was wondering if you have any thoughts about pairs trading? [An investment strategy that seeks to identify two companies with similar characteristics whose stocks are currently trading at a price relationship that is...
Read MoreIntroduction 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...
Read MoreOne of my problems when writing this blog is deciding whether topics that I’ve discussed, in detail, months ago should be repeated.Most of you have not been with me since the beginning (last June) and may benefit from such...
Read MoreMark, I just stumbled across MDWOptions.com and must compliment you for a very easy-to-read site that is both “usable” and “readable” in terms of content and style. Thanks…Your articles and...
Read MoreAs I’m sitting here listening to Tom Paxton, I’m reminded of his fabulous 1980 song about Chrysler: I’m Changing My Name to Chrysler by Tom Paxton Oh the price of gold is rising out of sight And the dollar is...
Read MoreI’ve been asked several times about my thoughts on using stop-loss orders when trading options.The main thought I have on this topic is that options are not stocks and must be traded differently. When a stock moves through...
Read More“One of the least recognized trading strengths is mental flexibility: the ability to keep an open mind to the evidence of the evolving marketplace and revise views and strategies accordingly.” The quote above is by...
Read MoreIn previous posts, I’ve discussed buying insurance when your option portfolio is subject to losses resulting from a significant market move. As a seller of credit spreads (the two halves of an iron condor position), I...
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