Not so good of a month for the S&P 500 as it closed out November today completely FLAT! However, our Naked Puts/Calls strategy returned a very safe and consistent 1.93%. On total return basis for the year our portfolio of options trading is still killing the S&P 500. For more details please see the Performance ...…
We hear it all the time right? Support and resistance…but what the heck is Support and Resistance for stock and options traders? And really why should we care about it after all? Well, you should care and here’s the skinny on this simple but powerful technical analysis tool. What is Resistance? Resistance refers to the ...…
In the world of option pricing, implied volatility is king. Its importance is paramount as its behavior can have substantial ramifications on a trader’s bottom line. An option’s price, like any tradable security, is driven by supply and demand. Implied vol is a handy metric allowing traders the ability to gauge the supply/demand status of ...…
We hope everyone had a safe and happy thanksgiving but it’s back totrading full time this week. As we head into the end of December and the stock market year ends,here are some key markets we are watching and what to expect fromthe VIX, the USD and Crude Oil……
We all hate rules right? But here are 8 rule for options traders that could turn that lack-luster portfolio into an income goldmine. Remember that professional traders don’t trade on emotions…they have set guidelines that help them uncover and trade the best options opportunities in the market. Trading capital comes in both mental and your ...…
Front month options are the nearest term expiration cycle options. Since most option expiration cycles are 4 weeks, it is the option that expires in less than 4 weeks or less than 30 days. On the normal option pricing screen, these are the options with the most recent expiration month. See the chart below for reference. Why ...…
Technical analysis is the superior way for investors and traders to make decisions when trading stocks and options. For many option traders, technical analysis gives much clearer entry and exit signals for making money in the markets. While it’s true that some investors dismiss technical analysis as inconclusive and arbitrary, the fact remains that technical analysis ...…
It’s options expiration day and time to decide what to do with your current positions right? If you sell options, it’s probably an anticipated event. When you buy options, it’s something usually something to dread. Either way, there are things you must know, and steps you should take, to avoid any unpleasant surprises on the third Friday of each month. ...…
What else can I say…HAPPY THANKGIVING! Please share this time with your friends and family and eat so much turkey that you fall down (wait that’s my plan!).…
You’re in an open option position but don’t know what your options are for exiting the option trade and/or position. For simplicity we will assume you own an option and are long (rather than short an option contract). Once you own an option, there are 3 methods that can be used to make a profit ...…
How to “Roll” option contracts and why you would want to be “Rolling” option trade are two very different topics which we will cover here. How to “Roll” an options position? The process of Rolling an option trade is fairly simple. Let’s say own an AAPL CALL option and want to keep the benefits of holding ...…
Here’s a recent chart of the European National debt by country in 2010 as a percentage of GDP. Oddly enough, Ireland isn’t even in the Top 3? What are your thoughts? Who will get the next bailout….comment here.…
Earlier this morning stock market futures were rattled as reports came in that North Korea launched dozens of rounds of artillery at a South Korean island near the two nations’ western border. Shortly after, South Korean forces then reportedly fired back. No matter how you look at this, it could be the start of a ...…
So you want to learn to trade weekly options but don’t know how to trade then or even what they are right? Here’s a short guide to the “weeklys” as they are called in the trading pits. What are Weekly Options? Weekly options are simply option contracts with a lifespan of only 1 week as ...…
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