Welcome to the first video tutorial this week: Strategies to Protect Option Trading Profits!
Reader’s Choice Week
Over the weekend, I emailed you all and asked what topics you would like to see covered in a video tutorial. Well ask and you shall receive! So this week, it’s all about Reader’s Choice – the topics you want covered and the strategies you want to learn more about. Here are the most popular topics that I will cover this week (all with HD videos for your viewing pleasure and education):
- Strategies to Protect Profits
- How and When to Trade Weekly Options
- How to Scan For New Trading Ideas
- When To Take Profits (or when to leave the trade open)
- thinkorswim (TOS) Broker Tools Overview
- The Top 3 Indicators for Option Traders
Have an idea for another set of videos? Post your ideas in the comments section below and I’ll schedule it!
Here’s the fist video this week. Again you can watch all our videos from now on in High Definition – how cool is that!
Leave A Reply (6 Comments )
Andrew
497 days ago
really good video, thank you.
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Andrew
497 days ago
I have a quick question. So when you create a credit spread, you want the spread (between the two options) to narrow, and when you create a debit spread (by purchasing the more expensive option, which is closer to at-the-money) you want the spread to widen. Is that correct?
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Kirk - Admin Reply:
January 11th, 2011 at 7:10 AM
It depends. You can create a wide credit spread (Sell a put at 50 and buy a put a 40 instead of 45). The more narrow the spread though the less risk you take on. For debit spreads you just want to do the opposite of the buy/sell (buy 50 Put and sell the 40 or 45 put). However with debit spreads you want the market to move pass your spread strike prices to make money.
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Gerald
497 days ago
I noticed in your example that the mark for the 50 put was .025. When you compare that to the 49 put at .02, why not just buy back the 50 put to preserve your profit? The ask is .03 and you can deploy the capital elsewhere without leaving the risk of the spread on.
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Kirk - Admin
497 days ago
Gerald, great idea. Of course you could do that as well. I did breeze over that area on the video, but down right closing it out would be a great idea. If you have a large portfolio however, then the $5 you could still make per contract with a spread MIGHT be worth it. Think about traders who are trading hundreds and hundreds right.
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