fbpx

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.

Midweek Options Update 10/28/20

The Covid-19 numbers have been picking up worldwide for weeks now but the markets have brushed them aside due to the hopes of more stimulus. Now here we are with the virus continuing to spread at a rapid pace and no stimulus to speak of. As a result markets are... Read moreread more

How To Use the Delta Of An Option

Options are the most flexible instruments in the world. They are also the most misunderstood financial instruments. The reason so many traders get frustrated using options is the lack of understanding of what impacts the price movement of an option. The terminology can be overwhelming for many newer traders We... Read moreread more

Weekly Options Recap 10/23/20

Last updated on October 28th, 2020 As we wrap up the week we are still waiting for an announcement on the stimulus plan in the works. Markets have been looking for more direction but instead we are left no close to a deal today than when we started the week.... Read moreread more

Midweek Options Update 10/21/20

Last updated on October 22nd, 2020 Another session of waiting for more stimulus news is the story of the day. We continue to see a low volume choppy environment and it will remain that way until we get an official announcement on the next stimulus plan. SPY has found support... Read moreread more

Weekly Options Recap 10/18/20

Last week was another week highlighted by news driven trading. We have talked about how the headline risk in this market would be extreme between now and the end of the year and that is exactly what we are seeing. Whether it be Stimulus rumors, election rumors, pandemic news, or... Read moreread more

How To Place Options Orders in the TastyWorks Platform

Last updated on October 19th, 2020 In a series of recent blog posts we talked about how we like to use credit spreads with our options trading at NetPicks. We talked about selling call credit spreads, put credit spreads, and iron condors. These trade types gives us tremendous flexibility in... Read moreread more

How To Place Options Orders in the Thinkorswim Platform

Last updated on October 16th, 2020 In a series of recent blog posts we talked about how we like to use credit spreads with our options trading at NetPicks. We talked about selling call credit spreads, put credit spreads, and iron condors. These trade types gives us tremendous flexibility in... Read moreread more

Midweek Options Update 10/14/20

Last updated on October 19th, 2020 With everyone focused on the elections and the next round of stimulus, the market has been in drift mode higher. With tech leading the way, we have seen another leg higher over the last few weeks. This has led to many stocks reaching overbought... Read moreread more

Best Order Types For Options Trading

Having a good set of mechanics in place for creating opening and closing orders is crucial as an options trader. While it might seem basic, done incorrectly and it can lead to lost money. In this article, we will review the different order types that we use most often when... Read moreread more

How To Trade Iron Condors With Options

In our last few Options trading articles we have taken a look at how we can use credit spreads to put on higher probability trades with less risk. We started by showing how we can sell Call Credit Spreads to put on bearish positions with 5 ways of making money.... Read moreread more

How To Trade Put Credit Spreads With Options

In the article about Call Credit Spreads, I wrote about how they  can be a great way to put on a bearish position with defined risk and 5 ways of making money. We are going to build on that article today by taking a look at selling a Put Credit... Read moreread more

How To Trade Call Credit Spreads With Options

What Is A Credit Spread A Credit Spread is a Vertical Spread that is sold to open and can be utilized with call options or put options. We love to use this strategy due to the flexibility that it offers in many market conditions. We can utilize these trades on... Read moreread more

Midweek Options Update 9/30/20

As we wrapped up the week last week we talked about how the S&P 500 ETF (Symbol: SPY) had held the 89 EMA on the daily chart 5 days in a row. Holding a big support level like this can lead to some powerful bounces higher. That is exactly what... Read moreread more

Weekly Options Recap 9/26/20

Last updated on October 1st, 2020 We have seen volatility market wide pick back up the last few weeks and expect it to stay active through the rest of the year. With so many unknowns with Covid and the Elections we expect prime trading conditions for the next few months.... Read moreread more

AAPL Trade Plan For Next Week

There is no doubt about it, Apple and it’s stock has been the undisputed market leader over the last few years. It is such a big part of the S&P 500 and the Nasdaq, that it drives most market movement each week. As goes Apple so goes the rest of... Read moreread more

IWM – Russell 2000 ETF

Last updated on October 19th, 2020 Over the last week we have taken a closer look at the components of the Nasdaq ETF (Symbol: QQQ) and the S&P 500 ETF (Symbol: SPY). These two ETF’s are at the top of my watch list on a monthly basis as they are... Read moreread more

Midweek Options Update 9/16/20

Last updated on September 20th, 2020 Coming into this week all eyes were on the Fed statement on interest rates which came out this afternoon and monthly options expiration on Friday. Today was all about the Fed and it did not disappoint active traders. After an initial move higher after... Read moreread more

Trading The Tech Sector With QQQ

In a recent blog article, we dove into the details of the S&P 500 ETF Symbol: SPY. It is one of our favourite markets to trade on a weekly basis as it is a very liquid product that shows consistent movement over time. A second ETF that is at the... Read moreread more

Is SPY The Best ETF To Trade With Options?

“Is it possible to trade the same 2 or 3 stocks every week to make a consistent income trading options? “If you could pick just one market to trade for the rest of your career what would it be?” I was asked these two questions last week from a newer... Read moreread more

Best ETF’s For Trading Options

Last updated on September 30th, 2020 One of the unique challenges of being in a decade long bull market is the expensive stock prices that we are seeing across the board. Nasdaq stocks like AMZN, TSLA, AAPL, GOOGL, FB, and NFLX are all active stocks that traders love to use... Read moreread more