Below is the portfolio income report for July expiration: Credit Spread Strategy: 4.35% To re-cap this month’s income, let’s look at what we made in premium vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN: RUT 910/915 CALL SPREAD – $20/$480 = 4.17% Return SPX 1,170/1,165 PUT SPREAD – $30/$480 = ...…
The IPO market has been very busy in 2011. But how would you know which companies are doing good and which are performing bad? So I put together the Best and Worst new stock IPOs in 2011. And judging by the number of companies that have lined up to file initial public offering (IPO) in coming ...…
Diagonal spreads are a great long term way to both invest with options and produce some monthly cash flow at the same time. Many traders actually don’t know much about how powerful and flexible these diagonal spreads can be for an option trader. Diagonal option spreads are established by entering both a long and short ...…
I have been trading and writing this blog for the past 5+ years now. Really an unheard of thing online as most websites are dead after just 12 months. I have met and talked with a lot of great people and learned a lot of lessons that I wanted to share… Some of these ‘lessons’ ...…
Let’s face it, paper trading is a necessity for any trader these days to be successful. The term Paper Trading simply means that you are pretending to trade financial instruments such as stocks, options, and futures using their current prices as would-be buy and sell prices. No real money is put at risk, instead “Monopoly ...…
Fibonacci retracements, fans, arcs, and time series are some of the best technical analysis tools for traders. They are not a perfect indicator (what is right) but they are very helpful if you know the basics. Many years ago an Italian gentleman named Leonardo Fibonacci discovered ratios that exist throughout all of nature. These ratios ...…
We all start trading for 1 reason – to make money. And usually when we start you will ask yourself “What can I realistically make my 1st year trading?” Pretty normal question to ask when you just start out I would say. I often find that most wannabe traders don’t have a clue as to ...…
Writing covered calls is a popular and generally conservative strategy that many investors use to generate a relatively consistent stream of income from their portfolios. In a nutshell, an investor who owns 100 shares of an optionable stock may elect to sell someone else the right to buy those shares from the investor at a ...…
June was a fun month to trade and again very profitable. We finally saw some volatility towards the later half which helped swell option premiums. This made things a lot easier actually when the market sold off hard. In late May when we completed building the June portfolio, it was clear that the market was ...…
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