12 Can’t Fail Steps On How To Place Your First Option Trade Tomorrow

first option trade

Placing your first options trade is not as hard as it may seem. You’ll never learn until you do it so let’s walk through placing your first trade step by step right now. At the end of this quick tutorial, add your comments and let me know if you think this was helpful in getting…

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A Disciplined Approach To Trading Options

disciplined investor

Many traders lose simply out of ignorance – as bad as this sounds it’s completely true. Honestly I throw myself into this category as well somethings when I see something I know I should trade on and I don’t. You see most investors base their trades on hunches, news, or tips from friends which we…

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How To Explain Different Financial Vehicles Using This 1 Great Analogy

financial vehicles

When I’m explaining financial markets to someone that is unfamiliar with them, I like to explain difficult concepts using analogies. One of my favorite analogies is comparing financial markets to vehicles. I use cars in particular because everyone knows what a car is and has either driven a car or ridden in one. Each vehicle…

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6 Quick Examples To Mastering Option Moneyness (ITM, OTM & ATM)

option moneyness

You have probably heard the following terms: in-the-money, at-the-money, and out-of-the-money. These terms refer to moneyness, which is an important aspect to understand if you are entering the world of options trading. In this article, we’ll discuss the basic concepts of option moneyness. What is Option Moneyness? Moneyness refers to how the strike price of…

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How Much Money Should You Invest In Options Trading?

options trading

For many people who are beginning options trading, they make the mistake of investing too much of their money in the new business. And since I get this question a lot from new traders I wanted to take the time to cover it in more detail in today’s post. A key part of a financial education…

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Casinos And The Stock Market – How To Trade Stocks and Options Using Odds

stock market

Casinos are built on odds and probabilities and to a certain extent, so should your trading system when it comes to the stock market. As traders, we know that we are never going to be right in picking the direction or magnitude of a stock market move all the time. So why don’t we take…

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4 Ways You Can Trade Weekly Options In Your Portfolio

trade weekly options

In addition to the variety of monthly contracts available, many underlying stocks are beginning to offer weekly options. These weekly options can be employed in various trading strategies to manage both the theta and delta risk associated with options expiration. Overall, the growth in weekly options can provide a richer strategy platform that should not…

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Return on Capital vs. Return of Capital

return on capital

When most traders get started they come into the market with one thing on their mind; make money fast! Return on capital becomes more important than the return of capital. Wait did you catch the subtle difference there? You see risk management and protecting your portfolio becomes an afterthought to making money and earning a high…

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Why “Cheap” Options Aren’t Always A Good Investment For Traders

cheap options

Too often I hear new traders talk about how they like to buy options that are cheap because they think it’s a good investment. I can understand where they are coming from because they relate option pricing to how stocks are priced. Cheap stocks are seen as a good investment because they can quickly rise…

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Short Selling Stock: How It Works And Why We Desperately Need It

short selling stock

I often have a hard time trying to explain how short selling stock works and more importantly, why we need it to keep the market alive. Now I understand completely the biggest hurdle that people have to overcome when we talk about short selling stock and it’s the ability to sell something you don’t own…

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