The easiest way to make a directional bet around an earnings release is to buy a call option to be bullish or buy a put option to be bearish. The trouble with that approach is there are more factors that go into the performance of those trades than the directional... Read more… read more
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.
Knowing when to close out of a trade is one of the most difficult questions traders have to wrestle with on a weekly basis. With options contracts, it is no different, and the decision to write, hold, sell or exercise can be confusing – especially because options contracts are impacted... Read more… read more
If you trade options for any length of time you will run into stocks and ETF’s paying dividends. It’s important to know when these dividends will require you to adjust or close a trade. What is a dividend? “A dividend is the distribution of a portion of the company’s earnings,... Read more… read more
Last updated on July 3rd, 2020 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... Read more… read more
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
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
Last updated on June 3rd, 2020 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... Read more… read more