Writing Covered Calls In Bear Markets – 4 Rules For Generating Profits During Market Declines

covered call income

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…

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14 Characteristics Of Highly Successful Option Traders

successful option traders

There are many lists out there of what makes people successful in life, and they always include character traits such as dedication, focus, passion, single-mindedness, determination, and confidence. Of course, this is true and these qualities, when applied correctly, can certainly help you to achieve success. But if we want to become successful option traders,…

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Analyzing New Trading Strategies – An Example Of One That Didn’t Go So Well

trading strategies

I’m always testing and analyzing new trading strategies. Well, maybe not new strategies per say but at least new techniques, entry points, risk management, etc. For the past 2 months I’ve been testing a new strategy with a small trade that hasn’t gone as well as I’d like and I wanted to share it with…

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How You Can Profit From The History Of Candlestick Patterns

candlestick patterns

Japanese candlestick patterns have been around for centuries. Originally they were used by merchants to help them predict and profit from rice trading. I guess you can say that they have really passed the test and are a “seasoned” tool for any financial market. If they weren’t somewhat reliable then they would have faded away…

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Are We In The Early Stages Of A Social Media Tech Bubble?

tech bubble

What’s up with all these social media companies filling for IPO’s lately? I guess the spark was lit with LinkedIn which went public just 2 weeks ago now. Since 2 other major social media tech companies have filed the paperwork for additional IPO’s – both Groupon and now Zynga. Coming Social Media Bubble? I hate…

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Are Wealthy Investors Always The Most Intelligent Investors?

Pretty heavy question here, but one that needs to be asked…Are wealthy or rich investors always the smartest or most intelligent investors? With the likes of Bernie Madoff these days who have wrecked lives, it would be hard to quickly answer YES. Sure it depends on what we are talking about here. I mean you…

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How Can A Call Option Decline In Value When A Stock Rises?

call option

I’m sure we have all traded a call option that declined in value when the stock was on the rise. I know I have done it many times before I started focusing mostly on option selling strategies. We all know that stocks and options are completely different investment vehicles. What’s hard about the question above is…

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Rebalancing Your Portfolio To Control Risk Exposure


Rebalancing your portfolio and adjusting it for risk and reward can be a daunting task for some traders. As with most things in trading, sometimes it just simply looks harder. To start there are many schools of thought with regard to rebalancing and allocating a portfolio – none of which are correct since they are…

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13 Stock Chart Patterns That You Can’t Afford To Forget

stock chart patterns

Stock chart patterns play an important role in any useful technical analysis and can be a powerful asset for any trader at any level. We all love patterns and naturally look for them in everything we do, that’s just part of human nature and using stock chart patterns is an essential part of your trading…

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Stock Price Gaps – Why The Happen And How To Trade Them

stock price gaps

Beginning traders were probably shocked the first time they experienced a stock price gap. I guess even the most experienced traders still get taken back when there is an unexpected stock price gap in a stock they are trading. Either way I wanted to cover once again why they happen and what you can do…

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