Back to Basics Friday: Calls and Puts

Options trading can be attractive to investors because it offers flexibility based on ever-changing market conditions. Up, down or sideways markets become irrelevant because there will always be a strategy. Savvy option traders know that can use strategies to suit their goal of generating income, hedging other investments or simple speculation….

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Things To Avoid When Trading Around The Holidays

The holiday season can be so seductive for a number of reasons. And at this time of the year, many people start phoning it. It seems like such a great time to trade. The wife is out shopping, the kids are still in school. You fire up the computer, log…

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5 Questions To Ask Yourself Before Making Impulsive Trades

There is no secret sauce to control your trading psychology on ever single trade – but you can get better at it over time. More often than not it’s the impulsive trades that become destructive to our portfolio. You know the trades we make on a whim and hope with no more…

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How Selling Options Changed Everything For Me!

It is no secret among my group of friends that I was a terrible trader. For many years, the joke was always on me. I had opened a trading account with $100,000 back in 2005, and by the time 2016 rolled around, I had about $50,000 left over. The account…

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4 Simple 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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Five Reasons Why Myths About Option Trading Are All Wrong

We have previously discussed the myth that 80% of all options expire worthless, which causes many options traders to forgo one whole side of the trading equation. Namely, buying options. This week I want to pull back a bit and discuss some of the broader and more general myths that persist and…

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Kiss Unlimited Risk Option Strategies Goodbye – Forever

Unlimited risk option strategies get a bad rap in the investing community among newbie traders. And while our backtesting research has shown that unlimited risk positions like short straddles and short strangles generate the best overall returns, you might be restricted in trading them because of your account type or…

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Why You Should Never Look At Another Stock Chart Ever Again

Stock charts are a strange beast – they confuse us and seduce new traders in equal measure, and there are a lot of myths built up about how good they are and what they can do for us as traders. Their visual appeal seems to somehow blind us, and we…

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What Can I Realistically Make My 1st Year Trading Stocks And Options?

The only reason anyone starts trading stock options is to make money, and one of the most common questions people ask is “What can I realistically expect to make in my first year of trading?” It’s a critical issue, but you probably won’t like the answer very much. I don’t…

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Four Ways You Can Trade Weekly Options In Your Portfolio

In addition to the variety of monthly contracts available, many underlying stocks are beginning to offer weekly options. These weekly options can be employed in various trading strategies to manage both the theta and delta risk associated with options expiration. Overall, the growth in weekly options can provide a richer strategy platform…

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How To Protect Your Portfolio In A Down Market

OptionAlpha | Original Link The further the markets continue to run higher, the greater the risk that another major market correction or market crash will happen in the near future. The stock market has fallen 9 times at least 30% which is once every 10 years. Right now we’re riding…

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The Risky Allure of Weekly Credit Spreads

With the advent of weekly options, there was proliferation a newsletters promising you all kinds of ridiculous returns. What they don’t tell you are the risks that come with those returns.

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