How To Make Simulated Option Trades (Even If You Don’t Know How)

Trade Adjustments

If you’ve traded for any amount of time you know that adjusting a current option position is a necessary evil whether you need to save profits or reduce risk. At some point, you’ll have a position that needs adjusting. When it comes to making that adjustment, sometimes I like to use simulated trades to plan my…

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Is There A Better Way To Invest In Low Volatility Markets (3 Suggestions)

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In times like this, where volatility is extremely low, great trades can be far and few between. As option sellers we like to sell premium when volatility is high. When markets are calm it’s hard to sit on your hands and wait for good trades to come around. We start thinking “creatively” about new ways…

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How I Negotiated A 17% Savings In Trading Commissions By Asking This 1 Question

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Each year around the same time I contact my broker to negotiate the commission rate I pay per option contract. I’ve done this consistently for the past 5 years and each time I successfully get reduced option trading commissions. Before I show you how to go about it you have to understand that you probably…

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The 3 Numbers You Must Know Before You Click “Send Order”

Option Trade Order Confirmation

You know that feeling you get, right? You’ve spend hours analyzing charts, you’ve looked at numerous expiration graphs for your next option trade, and you’re pretty sure that you’ve picked out a great trade with a high probability of success. Let’s suppose you chose a 60 day, 10 delta Iron Condor and the expiration break evens give you…

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Why Risk Is Actually Managed At Order Entry (Not Along The Way)isk

Risk Management

We all know that classic axiom about investing; manage/control your risk throughout the trade. But did you know that it could possibly hurt you? Yes it’s true that managing risk could help you actually lose money! Taking trades off that are losers before they have the ability to show a profit might be detrimental. In…

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Change This 1 Diversification Mistake Before Your Next Option Trade

Diversification

So many people in the investing world talk about diversification like it’s the end all solution to risk. Spread all your eggs into different little baskets so you don’t get hurt by the big bad market when things go south. Personally, I think this is a bunch of crap! Why would you buy a basket…

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Trading Psychology Is A Bunch Of Crap (Here’s How To Conquer It)

Trading Psychology

If you are prepared to commit to doing a few small rituals everyday, you can see powerful positive changes to your trading results. As emotional investors we can have constant conflict between what we consciously want and what our subconscious mind deems to be what we want or need. Henry Ford said it best. .…

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3 Step Formula To Easily Figure Out How Many Options Contracts You Can Trade

how many option contracts to trade

It’s fairly easy to blow up your trading account. . . Too often traders (both advanced and beginner) allocate way too much to a single trade. They think that because they have a “smaller” account that they need to up the risk and leverage to make money “faster”. What a stupid mentality. . .and I…

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Could You Be Really Messing Up Your Strangle Trades?

Straddle

You know a big move is coming you just have no clue which direction! You can just “feel” the energy building in the stock – maybe it’s before earnings or some big FDA approval. Whatever the case, a big move is coming and now with the Straddle option strategy you can profit from a move…

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The Power Of Order Spreading & Bundling Is Way Underestimated

Order Bundle

Chances are that when you place a trade you send everything into the exchanges in one, big order? Bundling all of the options you want into one order because, well, that’s the easy way to do it. What you may be missing is that by doing this you might actually be putting yourself at a…

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