Posts From Gavin McMaster

Gavin McMaster
Gavin has a Masters in Applied Finance and Investment. He specializes in income trading using options, is very conservative in his style and believes patience in waiting for the best setups is the key to successful trading. He likes to focus on short volatility strategies. Gavin has written 4 books on options trading, 3 of which were bestsellers.
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How To Trade A Poor Man’s Covered Call

Most traders worth their salt have used, or at least heard of covered calls. Covered calls are really easy to implement and are a proven long-term strategy. However, for some, the costs of implementing this strategy can be prohibitive. For a covered call trade, the investor needs to purchase 100…

Using Cash Secured Puts To Pick Up Stocks For Less

Getting paid while you wait, I like the sound of that. A cash secured put is a conservative options strategy that can be used to purchase a stock for lower than the current price. Let’s say you’re happy to buy Apple (AAPL) at $173. You’re definitely going to be happy…

How To Trade An Iron Condor

An Iron Condor is an options trading strategy where the seller of the Iron condor is looking for the price of the underlying security to remain in a relatively tight range and the buyer is looking for the price to move out of a defined range. To understand the Iron…

Options Education: How To Trade Put Ratio Spreads

The put ratio spread is generally considered a neutral options trading strategy, although it has the ability to make a profit in up, down and sideways markets.  For more, check out my ultimate guide to trading Put Ratio Spreads. Yes, it can make money no matter which way the market…

Is The Russell 2000 About To Break Out To New Highs?

Volatility has been eerily absent from the market lately with the ViX Volatility Index (INDEXCBOE:VIX) trading at levels not seen since 2017. Short volatility has certainly been the number one game in town so far this year.  For Iron condor traders, particularly those that trade the Russell 2000 (INDEXRUSSELL:RUT,), 2017…

Volatility Traders Betting On Higher VIX Via Call Spreads

Traders are always asking me how to trade volatility. Short volatility has certainly been the way to go this year with VIX Short-Term Futures (NYSEARCA:VXX) down 43%, Ultra VIX Short-Term Futures (NYSEARCA:UVXY) down 70% and Short VIX Volatility (NYSEARCA:SVXY) up 65%.  Truly amazing returns in anyone’s language. Over the weekend…

Is A Bull Market In Volatility (VIX) Nearing?

Over the weekend, I read an article arguing that we are potentially about to enter a bull market in volatility – see VIX Volatility Index chart below for reference (INDEXCBOE:VIX). The writers argument was that we have had an extended period of low volatility since 2012, similar to what we…

Lumentum Stock (LITE): Playing The Pullback With Options

Michael Lamothe from Chart Your Trade recently posted a chart that caught my eye. The stock is Lumentum Holdings (NASDAQ:LITE) and to be honest, I’ve never looked at it before. But the chart really grabbed my attention. I’ll preface this by saying that I haven’t followed the company, so I…

Verizon (VZ) Stock Options Strategy For Cautious Investors

Verizon has taken a beating lately having dropped from $54.80 down to $48.40, a decline of 11.7%. Verizon has long been a favorite for dividend hunters and this recent decline has seen the yield on the stock rise to 4.7%. That is sure to attract some interest shortly. Dividends have…