Options

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…

Using The $VXST To $VIX Ratio For Shorting $VXX

Recap:In our first article we examined the ratio of the CBOE VXST Short-term Volatility Index (INDEXCBOE:VXST) to the CBOE VIX Volatility Index (INDEXCBOE:VIX) as a method to improve long entries in the S&P index.  In last week’s article, we shared some preliminary numbers, using peaks in the ratio to identify opportune…

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…

Options Trading: Using Covered Calls To Increase Yield

When starting out with options, a natural place to begin is with covered calls. It’s a very easy to understand strategy for those that are familiar with stock ownership. The strategy involves buying a stock (if you don’t already own it) in lots of 100 shares. The total size will…

How To Increase Your Probability of Success Trading Options

Put 75%+ Odds In Your Favor – How To Increase Your Probability of Success Trading Options One of the biggest challenges newer traders face is finding a style that “feels right.” For many traders, the process can take a while to sort out and seem discouraging at times. A common progression…

Market Masters: How To Manage An Iron Condor Trade

For many professional option traders, iron condors form the basis of how they generate monthly income. Iron condors are a strategy that allows you to profit from sideways moving stocks, but they can also profit if the stock experiences slightly higher or slightly lower prices over the course of the…