The Most Important Aspect of Options trading

The rally over the past few weeks has occurred at a blistering pace. Only a handful of times in history has the market, namely the S&P 500, pushed lower by 10% or more over the course of one month, only to rally more than 10% in the following month.

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Why My Favorite Trade of the Decade Could Be Starting Now

It’s a sobering picture.

The global financial system is in dire straits. Resuscitation now looks doubtful.

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One of the Best Stocks for Trading Options

When speaking of investing, absolutely nothing is more important than discipline and careful risk management. This fact is particularly true when investing using options, because options offer an enormous array of strategies coupled with a huge amount of potential leverage. Essentially, an investor can purchase the right to a large portfolio with a comparatively…

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The “sell in May” phenomenon is in full effect.

In my webinar earlier this month, “How to Collect 15% from Stock Market Insurance” I presented the following slide and discussed the importance of protecting yourself against market declines. More importantly, I gave a few real-world examples of how we, as self-directed investors, can best implement such a strategy into our own portfolios.

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Why this Bird Beats Bulls and Bears

Stocks are going nowhere fast. I think the 12 year chart of the S&P 500 SPDRs (SPY) below says it all.

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Deep down, you knew it was coming… a sell-off.

The market’s bullish climb was never backed by positive economic news, technical data, or even common sense.

And now, as the market teeters on the brink, self-directed investors are facing even more uncertainty — we are entering a seasonally weak time for stocks.

Let me explain…

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Reduce Risk by 65% and Beat Buy and Hold

Earnings season officially kicked off earlier this week and many self-directed investors are getting nervous about their holdings. Combine worries about earnings season with continued European debt woes and the upcoming “sell in May” phenomenon, and you can see why investors are concerned about the intermediate-term future of their investments.

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Essential Investment Lessons Learned from Gamblers

Any time you make a bet with the best of it, where the odds are in your favor, you have earned something on that bet, whether you actually win or lose the bet. By the same token, when you make a bet with the worst of it, where the odds are not in your favor, you have lost something, whether you actually win or lose the bet.

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Essential Options Lessons Learned from Gamblers

As I always say, investment success comes from process.

Let me explain.

Back in my early 30s when I was privileged to live in sunny Flagstaff, AZ, I would take the reasonably short drive to Las Vegas so that I could make one the best bets in the gaming world.

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Why It’s Important to Stick with Your System

Before I get to my “Ask Andy” question of the week I want to go over a few key thoughts. Last week I spoke at length in my monthly webinar about the 40 ETFs I use exclusively in my options trading strategies. The questions were plentiful. In fact, the response…

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My Options Nemesis

I recently came across an article from a prominent options trader that was a true disappointment.

He brought up the question regarding credit spreads and if they constituted a viable options strategy. For some traders, credit spreads are not a viable strategy, but only because they prefer a different style of trading, not because the strategy is faulty.

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How to Use Them: The Top 40 Most Liquid ETFs for Successful Options Trades

Many options traders have requested that I publish my list of 40 ETFs that I follow on a daily basis for the Options Advantage portfolio. Well, per all of your requests I have decided to make my list available for weekly viewing in the Strike Price and daily viewing in…

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