A Ridiculously Clear Example Of Why Stock Charts Are Irrelevant (YHOO vs INTC Case Study)

stock chart

Stock charts confuse people. Come on now. . . How, good are you at “reading” the charts? I sure as hell am not good at it, and I’ve been trading actively for over eight years now. We say to ourselves, “If I could only read the charts better and predict the next move I’d be…

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Simple Ways To Trade Options In Your Retirement Account

How To Develop Synthetic Option Strategies In Your IRA Or Retirement Account

Options trading is super easy in a regular account. But it’s a who different laboratory when you have a retirement account. Getting creative with your positions can help boost your long-term portfolio profits. One way to do that is by trading synthetic options strategies. Today I want to cover 1 way you can develop a…

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3 Option Strategies To Use During Low Volatility Markets

low volatility markets

Low volatility trading is tough for option sellers like us. When markets are calm premiums are small and narrow – meaning that we cannot sell options far from the current stock price. So what’s a trader to do!? Staying active, and keeping position size small, is important but you don’t want to force trades into…

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Can Your Kids Teach You How To Be A Great Options Trader?

investing success

This weekend my baby girl will be two months old! And yes the time if flying. . . Every day is an adventure full of learning how to raise a child. Just like starting out in the world of investing you can read all about it in books and get advice from those close to…

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

adjustments to your option position

If you’ve traded for any amount of time, you know that adjusting a current options positions 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)

low volatility markets

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

trading commissions

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 five 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

You know that feeling you get, right? You’ve spent hours analyzing charts, you’ve looked at numerous expiration graphs for your next options 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, ten Delta Iron Condor and the expiration breakevens give you…

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Why Risk Management Is An Overused Buzzword In The Investing World

Risk Management

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

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How To Diversify Your Option Trades (And The 1 Mistake You Are Likely Making)


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 of…

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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 every day, you can see powerful positive changes to your trading results. As emotional investors, we can have the constant conflict between what we consciously want and what our subconscious mind seems to be what we want or need. Henry Ford said it…

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

how many options contracts can i buy

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?


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 options strategy you can profit from a move…

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The Order Entry Trick I Know You Underestimate

order spreading

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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When Should You Buy Back The Short Leg On A Credit Spread?

buy back the short leg on a credit spread

You’ve made a great credit spread trade, and the market is going the direction you wanted. Congrats to you! At this point, you’ve made nearly all the money you could make on the trade, and you’re left with a dilemma? In this post, I’m going to walk through the two major scenarios that you might…

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Option Trading Case Study: Finding The Ultimate Strangle Trade?

options trading case study

I’m trying something new here with these option case studies. Let me know what you think via the comments section after watching the videos because I’d be more than happy to make more. Adding a suggestion of what you’d like to see would be helpful too. . . Strangles = A Pure Volatility Play Strangles…

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The Worst Possible Trades You Could Ever Make – 2 Real Examples

worst options strategies

Strong statement right? I can back it up and will in this blog post. There are many ‘bad’ trades but today I’m going to focus on 2 of the worst possible trades. And just to be 100% clear this has nothing to do with market direction. Some would say that the two worst possible trades…

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Falling Down And Losing Money Is Good For Your Trading Career

start trading options

Nobody wants to struggle. We all want it easy – and if possible, quick and easy at the same time. Yet for some money things in life (of which include options trading) it’s the struggles that make us better. Stronger and more prepared. In fact, I have gone so far as to tell some of…

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A Quick Introduction To “Mini-Options”

mini options

In life, there are things that are just too damn expensive. Children, cars, houses and stocks. Some of the bigger name and higher value securities over the last 5-10 years have gotten so price heavy that it almost pushes the normal retail option trader out of the market for those stocks. AAPL, GOOG and AMZN…

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The Mobile Option Trader’s Guide To Investing On-The-Go

start trading stocks

As investors, we are seldom ready to trust mobile trading applications until something forces the change. This was just the case for me. Just this past winter I was traveling a lot for the holidays and just couldn’t access my desktop trading platform as much as I wanted. Thus, I had to rely on the…

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