Back To Basics Friday: Two Strategies For IRA Accounts

The reason options were invented was to reduce risk. Options transfer risk from the risk averse to the risk taker. When you accept that specified risk, the risk taker (seller) is paid a cash premium by the risk avoider. If you have been reading my daily newsletter, by now you…

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Four Easy Steps To Get You Started Selling Options

Are you are ready to start making money trading but you don’t know where to start? You want your investment returns to beat the market, but you don’t want to blow all your hard-earned money trying to learn how. I completely understand. When I started, I had the same exact…

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100% Chance of New Highs in the Next Six Months

OK, so the headline is a little strong. I can’t know the future, of course. However… 100% of the time – over the past 90 years – stocks have been higher after going through what they just went through. Can you name another indicator that has called the market correctly…

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Taking An ‘L’ Might Be The Best Result

Most traders have a bullish mindset, and usually for good reason. Over the last 50 or so years, the market has moved higher. There will always be declines, but the market has always recovered losses and moved to all-time highs.  That’s just a fact anyone can see if you look…

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Why The Greeks Are Important

The objective of every trader is to make money, but with an acceptable amount of risk. We find that one of the major issues for new options traders is because they have no idea how to use options to achieve their financial goals. Buy low and sell high is certainly…

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Back to Basics Friday: How To Read an Options Chain

Go look at the options chain… Does that make sense to you? If it doesn’t, today is your luck day. This video done by our friends at TraderFly.com illustrates exactly how to view an options pricing table, or chain, for even the greenest traders. Enjoy! — The Option Specialist

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How To Survive a Market Correction

The last few market sessions have been scary, but they are very normal. Most experts predict we could see a correction every 8-12 months, and last on average about 54 days. What’s most strange is that corrections are a sign of a healthy stock market… in most cases. A correction…

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Wall Street Created The Product That Helped Plunge The Market

So much for profiting off of a calm but booming stock market. The dramatic sell-off in stocks Friday and Monday forced a flood of buying in derivatives to close out one of Wall Street’s biggest trades: while buying stocks, traders were betting against volatility, which has been near historic lows….

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The Best Strategy for Profiting In This Market

We are following a very similar script from January 2016. So what exactly did we learn was the best strategy for profiting in a crashing market… Well, for most investors to make money, they tend to follow the market and go long when the market is rising. Alternatively, they go…

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Debit Spreads vs Credit Spreads – When Should You Use Each

Let’s say for instance you have targeted a stock or ETF setup you like and want to make a directional trade. Maybe some technical indicator alerted you to a possible turn in the underlying or you just needed to hedge your portfolio with a new trade. Whatever the case, you…

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Back to Basics Friday: The Biggest Options Myth Dispelled

One promoter who likes the idea of writing covered calls states that: “Over 75% of all options held until expiration expire worthless… That’s why you should do what the pros do and sell options to other people. After all, if most of them will expire worthless, why not collect some money for…

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Want Your Trades to Skyrocket? Use This Method…

What if there was a simple trick to juicing profits during earnings season, regardless of the direction of the stock. For trades, the number single biggest problem during earnings season is not knowing where a stock will move after its earnings come out. And that not know can make it…

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