Correlation Research Suggests Diversification Fails When You Need It Most

There’s an old saying in investing that a “rising tide lifts all boats.” While that might be true, when the tide goes out, all the boats sink and fall just as fast as when they rose together. Still, you’ll hear the pounding of drums in the name of classic diversification as the portfolio savior during…

Read Full Article

The Best Covered Call Management Techniques

You’ve got your prized covered call setup, and it’s working in your account – now what? How do you manage or adjust the position in different market scenarios? Lucky for you, we are going to review the best-covered call management techniques on today’s podcast. If you think this show is just for stock traders, you’d…

Read Full Article

LEAPS Option Contracts – A Complete Guide For Traders

Although we generally prefer to trade shorter duration option contracts here at Option Alpha, contracts a couple of weeks to a couple of months out from expiration, there’s a whole other classification of options contracts for traders that want to take longer-term exposure or positions. Long-term equity appreciation securities, or “LEAPS” as they are lovingly…

Read Full Article

Box Spread Basics for Options Traders

Box spreads and arbitrage strategies are often synonymous with one another and referenced interchangeably in the options trading community. And after all, who doesn’t want a risk-free way to earn money, right? But like all things that seem too good to be true, box spreads carry some serious risks if you’re not careful in how…

Read Full Article

The Trader’s Guide to Index Options

Index options have continued to grow in popularity. Perhaps because they are easy to use, available in highly liquid markets, have favorable tax treatment in some cases, and offer a simple settlement process. Therefore, we’ve dedicated an entire show to help you understand what index options are, how they work, how they are different from…

Read Full Article

Protective Put Strategy Researching Findings

Hedging stock positions can be tricky business. One of the most common schools of thought is to use a simple protective put strategy whereby a stock investor would simply purchase a long out-of-the-money put option to act as “insurance” in case the stock fell. Sounds logical, but we’re skeptics here at Option Alpha and so…

Read Full Article

The Impact of Volatility On Options

Stock trading is easy to understand conceptually because it’s one-dimensional. Either the stock goes up, or it goes down. Clear and simple, at least from a trading and profit or loss perspective. Options trading, however, is multi-dimensional. Price, time, and volatility all impact the value and price of an options contract. On today’s show, we’re…

Read Full Article

We Stopped Trading Earnings After We Saw This New Research

Earnings season comes around four times a year for stocks, and, as traders, we’ve always loved the idea of trading these events for the crush in implied volatility and quick potential moves in option strategy positions. However, after analyzing 1,546 earnings events across 40 underlyings over 10 years, we decided to stop trading earnings events…

Read Full Article

The Misbehavior of Markets – Exclusive Interview w/ Co-Author Richard Hudson

We’re excited and honored to have a very special guest this week on the podcast, Richard Hudson, co-founder of the London and Brussels-based Science Business Publishing Ltd. He’s the co-author of The (mis)Behavior of Markets: A fractal view of risk, ruin & reward, which he wrote with famed Yale/IBM mathematician Benoit Mandelbrot. Our discussion, frankly,…

Read Full Article

Mastering Covered Calls (Free Audiobook)

This week on the podcast we’re doing something a little different and turning this podcast episode into a full-blown audiobook. Today I’m recording the newest book we released entitled “Mastering Covered Calls”. I encourage you to pick up your copy now, did we mention it’s 100% free, and follow along as you listen to this…

Read Full Article

Page 2 of 52