There are about 72 options trading strategies. The following infographic describes the top 10 options trading strategies: Covered Call, Protective Put, Long Call, Long Call Spread, Long Put, Long Put Spread, Long Straddle, Long Strangle, Collar and Iron Condor.
A question from a reader: "I sell straddles, usually 30-45 days prior to expiration on the SPX index at the current market price. What do you think is the best option strategy to offset large moves up/ down? Would buying a straight put (or a put spread) be best? It's an expensive route to take and just wondering if you have another solution?"
The more I talk with traders, read articles and listen to commentators the more everyone seems to be talking about what is the “most probable”. Certainly we all like the thought of being on the right side of a trade and assessing probabilities can play a large part.
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
Weekly options, first introduced by CBOE in October 2005, are short term options as opposed to traditional options that have a life of months or years before expiration. Originally, new series for Weekly options were listed each Thursday and expire the following Friday.
FANG, an acronym created by Jim Cramer a few years ago, is representative of four of the most popular and best-performing tech stocks in recent memory - Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (GOOG). How those four stocks are relevant to us?
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
Amazon reported earnings after the close today, and the company missed expectations on profits. It happened only once since 2014. Is it just a bump in the road? Or a sign of upcoming pullback? Should you buy the pullback? Or should you take your money and run?
Traders are human and when they undertake anything new, they come to the table with certain preconceived notions or habits, or mindsets. It pays to take advantage of your education and experiences and apply appropriate lessons to any new challenge, including becoming a successful trader.
There are 5 stages every trader will go through over the years. You can’t skip one and knowing which one you are in and being totally honest with yourself is essential. Excellent post from our friends at Tradeciety. Which stage are you at right now? Try to answer this question as best and honest as you can.
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
Have you ever traded earnings? Did you buy puts, got the direction right but still lost money? How is it possible? If the stock declined, surely the puts would get a significant bump up in price, right? Wrong! This is where Volatility collapse comes into the play and hurts your position.
