How And When To Trade Weekly Options

Continuing with our Reader’s Choice week, here is the next video tutorial: How and When to Trade Weekly Options. A simple guide to weekly options and how best to use them for your trading.

What’s Next This Week?

  1. How to Scan For New Trading Ideas
  2. When To Take Profits (or when to leave the trade open)
  3. thinkorswim (TOS) Broker Tools Overview
  4. The Top 3 Indicators for Option Traders

Would you like to see something covered? Post your ideas in the comments section!

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Watch The 1st Video In This Free 4-Part Series

I’ve been told by tons of people that you’ve got to either have a lot of money or a really killer system to trade options and win. Some new indicator or signal that will transform your portfolio.

And I’m sure you’ve heard the same thing and are sick of these expensive, dead-end courses and websites wasting your time and money.

Honestly, there is no “magic secret” to trading options. It simply comes down to an understanding of risk management, option pricing and strategy selection.

Instead of learning these lessons the hard way (i.e. losing your shirt in the market), why not take my free 4-part video course as I cover each area in detail. Plus, I’ll go over the exact checklist I use for selecting trades each month!

Start Our Free 4-Part Video Course And Learn How To Make Smarter Option Trades. . .

I've been told by tons of people that you've got to either have a lot of money or a really killer system to trade options and win. Some new indicator or signal that will transform your portfolio magically overnight.

And I'm sure you've heard the same thing and are sick of these expensive, dead-end courses and websites wasting your time and money. This course is different.

Free Options Trading Course

You see, there is no "magic secret" to trading options. It simply comes down to an understanding of risk management, option pricing and strategy selection.

Instead of learning these lessons the hard way (i.e. losing your shirt in the market), why not take my free 4-part video course as I cover each area in detail. Plus, I'll go over the exact checklist I use for selecting trades each month!

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  • Greg

    Nice video on weekly options.

    I would be interested to see a video on credit spread adjustments and how to use stop losses with credit spreads.

    Thanks.

    Greg

    • Kirk – Admin

      Thanks Greg…will add it to the list….any particular situation you keep running into with the credit spreads and stop losses?

  • Jody

    I would also be interested in a video on credit spread adjustments and how to use stop losses with credit spreads. For example, if a spread is sold for a 0.40 credit, is it a good strategy to enter a stop limit order at, say, 0.80 so that your maximum loss is 0.40 (1:1). I have used this strategy with limited success as I sometimes get stopped out prematurely and then the stock reverses and my credit spread would have expired wothless allowin me to keep the full premium. What are your thoughts/experiences on using stop loss orders on credit spreads? Thanks. Jody.

  • Kirk – Admin

    Great idea Jody and I'll add it to the list of videos.

    Generally I don't like the 100% stop loss rule for the simple reason you explained here. It only helps to lock in losses rather than protect your trading position. I actually favor legging into the spread and/or not using a stop loss until you know for sure that you want to close the position. Most often the more important question is not whether the price increased, but whether the strikes are still far from the market?

    If it's still far from the market with expiration near by then leave the trade open…if not consider closing it.

    Hope this helps and thanks for the comments as always Jody!!

    • Jens

      Thanks a lot for your questions and comments in this qualified blog..
      Of course one question has risen up immediately for me like – what is far enough?
      I made the experience with a sold 95/97 vertical in CL last weeks that a quick move of delta from 9% to 35% within 3 days can really struggle and for my feeling market wasn't far enough and I closed.
      Finally it was wrong due to market movement down but I'm not sure if it was wrong due to trade management.
      So a video of spread management would be really great.

      Thanks in advance.
      Jens