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Overall 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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Iron 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...

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There 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...

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Are 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...

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It 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...

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Credit 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...

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Option 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...

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Is 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...

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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...

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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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Apple Stock or Call Options

Apple Inc. (AAPL) stock is much cheaper to purchase now then it was before its split back in June 2014. And even though it has declined over the last month, it is still rather pricey for many...

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An Options Watch List

If you are a NFL football fan, you probably know that we are getting ready to start the playoffs in a couple of weeks. Teams are gathering information about their opponents and trying to gain the upper...

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Should Option Traders Consider Short-Term Call Options

When an option trader buys a call option, he or she has the right to buy the underlying at a particular price (strike price) before a certain time (expiration). Keep in mind that just because the...

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Options Trading System

Looking for an options trading system to treat yourself or someone in need this Holiday Season? Let the Market Taker Mentoring Trading Path be your options trading guide. The MTM Trading Path The MTM...

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When to Consider a Trailing Stop for Options

The market has moved higher, lower and higher again over the last month or so. Even though the market has rallied as of late, there’s still a potential for the market to move lower. Regardless, whether...

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Option Strangle Anyone?

The market has been quite volatile over the past month or so. The S&P 500 started out the month trading above the 2,100 level and then fell to around the 2,020 level before rebounding again. With...

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AAPL and Controlled Stops

If you are like a lot of other option traders, you probably avoided trading Apple Inc. (AAPL) during its recent earnings announcement. Now that the volatility event is over, you might be looking to...

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Going for the Hail Mary with Call Options

When a football team is down in the closing seconds and the team has no alternatives but to heave up a desperation throw towards the end zone, it is often referred to as a “Hail Mary” pass. In other...

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Earnings and Options

With Apple Inc. (AAPL) expected to announce their earnings this coming week and a plethora of companies afterwards, it is probably a good time to review how an option price can be influenced by...

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Outright Call and Put Options

Another topic that is brought up often in my Group Coaching class is buying call options and put options outright. When option traders first get their feet wet trading options, they often just buy call...

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