Category Archives: Stock Options

Stock options are financial contracts executed between two parties in an underlying stock or ETF. There are two main types of option contracts: Call options and Put options. In either case, the option buyer pays a premium to the option seller for the right, but not the obligation, to buy/sell 100 shares of the underlying security at a predetermined price in the future. Option sellers, therefore, give up their right and have an obligation to deliver the shares if and when the contract is exercised or reaches expiration. Put options give the buyer the right to sell the stock or ETF whereas calls options give the buyer the right to buy the stock or ETF.

Guide to Stock Options

Amazing Risk Based Options Pricing Example with SPY Credit Spread

Risk based options: In tonight’s video we’re going to talk about all of the trades that we entered for Tuesday, June 30th. Just as a quick reminder, tonight is the last night, there’s no gimmicks or sales thingies here, it’s just we’re closing down the lifetime membership tonight. If you are interested in getting on, I…

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ADBE Earnings Strangle Option Trade

Earnings trade: In tonight’s video we’re going to talk about the one earnings trade that we did have today in Adobe for Tuesday, June 16th. Sorry this video’s a little bit late, just got in from a family function so just trying to get this out, as always, to you guys. We did enter a new trade…

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FXE Iron Condor Rolling Option Trade

Iron condor: In tonight’s video, we’re going to talk, about the one adjustment trade that we made for Monday, June 8th. I think it was pretty funny because I got a ton of emails about this and this is a pretty standard type of adjustment, but maybe it was confusing because we already had a position…

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Adjusting Options Trades That Go Bad

Option trades: In tonight’s video, we’re going to go over all the trades that we made on Tuesday, February 17th. We’ve got a short expiration week with the holiday yesterday. Hopefully, you guys enjoyed the lovely long weekend, but that does mean that we have a lot of adjusting and closing to do this week this…

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How To Place Earnings Strangles?

Earnings strangle: In today’s video, I want to go over all the trades; we made for Wednesday, February 4th. It was a pretty good day. We had two earnings trades at the very end of the day. It took a little while for these things to get filled. We kind of stuck with our prices on…

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Setting Up Directional Calendar Spreads

Calendar spreads: In today’s video, we’re going to cover all of the trades that we made on Friday, January 23rd, but it is Saturday, so I’m doing this video over the weekend as always. It was just a very quiet day, I guess, with just a couple iron condor trades that we’re adding and we’re going…

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Rolling An Iron Condor Earnings Trade

Iron condor: In tonight’s video, we’re going to go over all the trades that we made on Wednesday, April 22nd. We had a kind of interesting day. Most notably apparently were just dealing with earnings right now. A lot of the trades that we’re doing right now since we’re in the bulk of earnings season are…

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COH Put Assignment

Put assignment: I just wanted to record this quick video for you because I did get a couple of emails and we did as well, although maybe not everybody did, but we did get assigned on our short 43 puts for Coach. You can see that we got the email this morning and right now, we’re…

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Exact Steps For Selling An Iron Condor

Selling iron condors: Tonight, we’re going to go over just the one opening order that we had in GILD for a new iron condor trade. Since we only have one trade today, it was a relatively quiet market and we’re getting into the holidays. Apparently, I wanted to take a little bit more time and go…

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Profiting From A Drop In Volatility With VXX

Volatility: Tonight, we’re going to go over all of the trades to kick off the last couple of days for 2014 with all of the trades that we made today on Monday, December 29th, plus we’re going to talk about the one trade that we had on Friday of last week that we just didn’t get…

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Option Alpha