Mastering Vertical Spreads on AAPL
One of the basic directional spreads when trading options is that of the vertical spread. It can be extremely versatile and represents a major building block of more complex spreads. With a vertical...
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Stock Repair Strategy Using Options
It has been a rough start for investors in 2016 with stocks dropping even more in than they did in December 2015. Is the market ready to rally soon? Some stock buyers are waiting for some of their...
View ArticleIs Option Gamma as Important as Delta?
Many option traders will refer to option delta as the most important option greek. It is debatable but in my opinion if you do consider it the most important, the next most important greek for me is...
View ArticleOption Adjustments
Although I personally do not like using the word “adjustments” with options trading (I prefer your new outlook or just a new trade), there are many times they need to be done. Adjusting option...
View ArticleCredit Spreads Function Similar to Insurance
Selling a credit spread involves selling an option while purchasing a higher or lower strike option (depending on bullish or bearish) with the same expiration and with the short option being more...
View ArticleIt Could be a Double Play!
With baseball season right around the corner and the Chicago Cubs hopeful that their long streak without a World Series might be in jeopardy this year, it might be a good time to talk about a subject...
View ArticleAre Cheap Call Options Worth it?
It seems like every so often in my Group Coaching class, a student will ask me about buying a deep out-of-the money (OTM) options. Many option traders especially those that are new, initially buy deep...
View ArticleThere Will be a Time to Consider a Bear Put Spread
The market has been on quite a run higher lately with the S&P 500 looking to potentially test highs from last year. Maybe the market will continue to move higher but traders need to be prepared...
View ArticleIron Condors
An iron condor occurs when an option trader combines a bear call spread and a bull put spread. It is essentially combining two credit spreads as one trade. The trade is executed by buying a...
View ArticleOverall Market Analysis is Essential for Option Trading
Making stock option picks with huge profit potentials, whether the market is up or down, depends on diligent market research and a thorough understanding of stock option fundamentals. In my class, I...
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