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
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.
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
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
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
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