Options 101: A Myriad Of Strategies
The beauty of option volatility trading is its flexibility. The math does not change as you move from one asset class to another. The market forces certainly change, but if…
Intermediate Series: Intermediate Options Strategies
Options 101: How To Profit From A Bull Put Spread
Hey, Traders from around the world! I trust you are doing sensational. What a beautiful trading season it has been. In this article, I’m covering a semi-advanced option strategy. Let’s…
Options 101: Cash In With Bear Put Spreads
What: A bear put spread is a semi non-directional strategy involving two option legs: a put that you purchase and one that you sell. What I like about the bear…
Options 101: How To Construct A Directional Play
When I identify an opportunity for a directional play, how do I decide: a) what type of trade I want to do and b) what strikes do I want to…
Vertical Spreads: More Baggage Than Benefits?
Vertical spreads are a popular way for option buyers to lower their cost, and therefore risk. Likewise, they are often used by option sellers to limit risk and margin. Yet,…
Option Selling: A High Probability Trading Strategy
Despite the lack of broker approval, short option trading can be a high probability strategy In last month’s article, we focused on the risks and challenges of short option trading,…
What You Really Need To Know About Option Selling
Commodity Option Selling: Is it as bad as your futures broker says it is? The practice of option selling is a controversial strategy for commodity option traders to partake in. …
Picking the Right Option to Sell
Option Sellers have Many Choices when it comes to taking Premium. Here is how to select your strikes like a Pro. Embarking on an option selling campaign can be an…
Trading 101: How To Profit From A Ratio Spread
Hey lovely folks out in the trading world! I hope you’re doing grand! It’s that time again! Another week, another month and earnings season approaches. I want to provide some…
Trade A Range Bound Stock Market With A Strangle
Last Friday’s jobs data was a mixed bag of tricks. The Nonfarm payrolls were well above the consensus of 190,000, coming in at 242,000. The unemployment rate held at 4.9%,…
How to Trade Market Volatility with Defined RIsk
Well it didn’t take long for the action to start this year. Market jitters in Asia, a little devaluing of a currency, a couple of hundred point drop in the…
How To Profit On A Bull Call Spread
Hey, Traders from around the world! I wrote a little number on bear put spreads last week. I figured I would just follow up with its sister, the bull call…
Top Five Things Traders Need to Know About Option Margin
The truth is, unlike margin on futures contracts, option margin is dynamic. It is almost constantly changing along with market price, volatility, and the exchange’s perceived event risk. Further, many…
