Options Trading

Options trading utilizes leverage with the ability to control stocks in 100 share increments at a fraction of the holding price of the actual stock. Options trading is similar to the concept of rent - as in renting shares without full ownership yet taking advantage of the potential appreciation of the entire stock movement.

Why We Don’t Like To Use Stop Orders When Trading Options

I have heard all of these statements repeated during my nearly 20 years of trading options and markets in general: “Let your winners run, cut your losses quickly.” “Keep your losses small” “You have to use stop orders” Traders get so concerned with getting the stop orders in place to... Read more… read more

Placing Option Orders In Volatile Markets

Last updated on April 4th, 2020 Options traders love volatile markets. I would much rather trade in active market conditions with big moves back and forth rather than a slow market like we saw for most of 2019 and early 2020. However, with volatility returning the last month, it does... Read more… read more

How Big Of An Account Size Is Necessary To Trade Options?

‘How big of an account size is necessary to trade options?’ Over the past 20 years I have had the privilege of working with thousands of traders looking to trade in the options markets. This is one of the top questions I get. The beauty of trading options is they... Read more… read more

5 Market Internals To Watch

Last updated on April 4th, 2020 The main work space that I look at throughout the day to get a feel for market strength or weakness is what I call my Market Internals work space. In this article, I am going to discuss that market internals I use on a... Read more… read more

Buy Call Options Or Sell A Put Spread?

Markets continued their historic run of extreme volatility this past week due to the spread of the coronavirus. We are in the midst of a global economic slowdown that looks to be in place for the next few months at a minimum. While talk of a recession is no fun to go through,... Read more… read more

How Important Is Volatility When Trading Options?

Last updated on April 4th, 2020 It’s easy to turn on financial media these and get scared away from the markets due this high volatility that have been seeing the last 3 weeks. As options traders, we have the opportunity to use the volatility to our advantage as it can... Read more… read more

How To Get The Best Price On An Options Order

Last updated on April 4th, 2020 The last few weeks as the coronavirus crisis has evolved, have produced some of the most volatile markets we have ever seen. 5% moves in the S&P 500 used to take days and are now taking a matter of a few hours. As a... Read more… read more

Options Trade Of The Week – VXX

Over the last 2 weeks we have seen global markets get crushed due to coronavirus. We are in the midst of a historic move lower in equities and move higher in the volatility products. Markets are pricing in extreme fear due to the spread of the coronavirus. To take advantage... Read more… read more

Navigating Coronavirus Volatility With Options

We just completed one of the most volatile weeks of trading that markets have ever seen due to he fear of the unknown due to the spread of the coronavirus (COVID-19 ). Panic has completely gripped the financial markets.   VIX & Market Volatility The VIX, which is used by... Read more… read more

Monthly or Weekly Options…Which should I trade?

When talking about stock options there are many common questions that come up. Which strike price should I trade? Should I buy or sell the options? Should I use monthly or weekly options? The reason these questions can be tricky is that there is no perfect answer that fits each... Read more… read more

Using Options Basics to Increase Profits

Turn on any type of financial media or have a conversation with a long time money manager and you will hear that trading Options is a very risky endeavor. You will hear stats thrown around that 95% of traders fail in making money long term in the markets. It bothers... Read more… read more

Options Trade Of The Week – DIA

To take advantage of a potential move lower in the market, we are looking at buying Put Options on DIA for our Options Trade Of The Week. Buying Put Options is an aggressive trade looking for a move lower. It’s a break from the Credit Spreads that we have been... Read more… read more

Options Call Spread Trade – Pinterest

Last updated on March 25th, 2020 We are finally starting to see market selling this week for the first time in a number of months. We have been talking about this move in our last few Options Trades Of the Week. With the selling starting to pickup, it will begin... Read more… read more

Options Trade Of The Week – NFLX

Last updated on November 4th, 2019 Are the big swings in this market this week causing doubt as to what trades you should be placing? I have heard from numerous traders just over the last few days that are frustrated with the big volatility that seems to come out of... Read more… read more

5 Questions To Instantly Improve Your Options Trading

Last updated on April 4th, 2020 Do you ever get the feeling that markets are rigged against you? Does it always seem like the market makes the exact opposite move that you are looking for? Why does it seem like the market reverses the very moment you put a trade... Read more… read more

Options Trade Of The Week – UAL

Last updated on February 13th, 2020 We continue to see markets driven by headlines here this week. Everyone’s focus is on the trade war with China, new tariffs ready to kick in over the weekend, and the Trump tweets that seem to come out every few hours. As a result,... Read more… read more

Options Trade Of The Week – NKE

Last updated on November 4th, 2019 We have finally seen the news cycle start to settle down this week. After seeing headlines dominate trading the last 4-5 weeks with news out of the China/US trade war, new stimulus announced from the Fed, and an announced Brexit deal we are finally... Read more… read more

Options Trade Of The Week 6/14/19 – EBAY

Last updated on November 4th, 2019 After selling a call spread on AMD in last week’s Options Trade Of The Week, we are going back to the well by selling another call spread this week. This time we will be doing so on EBAY. We have continued to see a... Read more… read more

Options Trade Of The Week 6/7/19 – AMD

Last updated on February 13th, 2020 The market has produced one of the biggest 5 day rallies in a long time here this week. We have seen 5 days in a row of impressive gains to the upside and as a result, the market is overbought in the near term.... Read more… read more

The 1 Mistake That Is Causing Most Options Traders To Fail

Last updated on April 4th, 2020 I have seen a disturbing trend with many retail options traders over the last year that is holding many people back from experiencing the big growth in their accounts. The issue has to do with not using proper risk management in their trading. A... Read more… read more