Back to Basics Friday: Selling Calls

Let’s say the market turns bearish.  I realize this is hard to believe, but at some point, it will happen. You are going to need a bearish to neutral strategy that will capitalize on time decay, downward moves in vol and certain a down move in the underlying stock. So…

Read more »

Back To Basics Friday: Picking an Options Broker

If you ask any diehard options trader what the best broker is for options trading, you’ll likely get a variety of answers. This is because many traders rate brokers based on different factors. Having said that, one of the most important factors when selecting an options trading broker is cost. When…

Read more »

Here’s Why It Could Be Another Big Year For Income Traders

For most market spectators, the beginning of the year is when we are read analysts forecasts for the year ahead. Most, if not all, these forward-looking forecasts are based on historical data. One solid way to project a future price target for the S&P 500 uses the long-term average price-to-earnings…

Read more »

How To Use Orders To Target Profits

In the world of investing generally – and options trading in particular – it is not only important to know when to get in and get out of a trade, it is also important to know how to do so. Whether you still call trades into your broker, or enter them into an online platform, or…

Read more »

Options Trading Is Not Gambling, So Don’t Listen To People Who Say Otherwise

When people don’t understand something, they tend to cast aspersions, and investing in options certainly fits that bill. Options are incredibly misunderstood by both traders and non-traders so it makes sense that many people liken it to gambling with outcomes no different than sporting events. The differences are so much easy…

Read more »

How To Trade Spreads in IRAs

Most investors who already trade options, certainly have an idea of what spread trades are all about. For those who are already familiar, I hear from investors about trading them in their IRA accounts. Spread trades are a great way to generate extra income and they can also be used…

Read more »

Back to Basics Friday: 12 Failsafe Ways To Place Your First Trade

A lot of people get nervous before they place their first options trade.  If you never traded an option, and have just been an observer, this is perfect guide on exactly how to place your first trade. This great tutorial comes from one of the my favorite resource. Step 1:…

Read more »

The One Thing That Makes Me Successful

Today’s post has been written by Michael Lamothe of Chart Your Trade. One of the things that has transformed me into a successful trader is following a routine. That routine, like Michael, writes, is as important to a trader as breathing is to be alive. Successful trading is consistent.  Successful trading…

Read more »

How Much Do You Really Need To Start Trading Options?

This is a big question I get asked pretty regularly, so I figured this would be a good day to answer it for my readers. How much money or capital do you need to start trading options? First off, it makes sense when you start off that you would want…

Read more »

Back to Basics Friday: The Married Put

For items you value most, you generally buy insurance. Whether a home, a car, or your own health, buying insurance makes sense. But what about your retirement nest-egg or your trading portfolio – have you insured them? The married put options strategy is a way to insure stocks in your…

Read more »

Avoid These 10 Mistakes When Trading Options

Trading options can be one of the most effective tools for investors to leverage their existing assets and control their overall portfolio risk.  Options allow investors to profit in up, down and sideways markets, which make their appeal so great. Options can also be used to cut losses, protect gains…

Read more »

Back to Basics: Three Ways To Profit With Put Options

The two primary types of options strategies are call options and put options. In keeping with our back to basics Fridays, I am going to show you a few different ways you can profit using put options. The Buying a Basic Put Option For Profits As you have learned, a…

Read more »