Homeruns and OTM Call Options
This past week in Group Coaching, a student asked me about buying deep out-of-the money (OTM) options. Many option traders especially those that are new initially buy deep out-of-the-money options...
View ArticleOption Delta and Option Gamma
The option “greeks” help explain how and why option prices move. Option delta and option gamma are especially important because they can determine how movements in the stock can affect an option’s...
View ArticleA Credit Spread can be Similar to Insurance
Selling a credit spread involves selling an option while purchasing a higher or lower strike option (depending on bullish or bearish) with the same expiration and with the short option being more...
View ArticleShort-Term Call Options
With the market once again considering a move higher as earnings wind down, it might be a good time to talk about call options. When an option trader buys a call option, he or she has the right to buy...
View ArticleShort-Term Put Options
Last week we talked about short-term call options and this week I thought it would be appropriate to discuss short-term put options. The mentality behind short-term put options is probably different...
View ArticleThe Iron Condor
An iron condor occurs when a trader combines a bear call spread and a bull put spread. It is essentially combining two credit spreads as one trade. The trade is executed by buying a lower-strike...
View ArticleA Different Use of the Butterfly
There are several ways to make adjustments or lock in profits on a profitable long call or long put position. One of my favorites has to be converting the option position to a long butterfly spread. It...
View ArticleConsider a Collar for Profitable Investments
A collar strategy is an option strategy that can particularly benefit investors. In this blog we have a lot more options education for traders and less for long-term investors so here is a strategy...
View ArticleLock in Option Profits with a Butterfly
There are several ways to make adjustments or lock in profits on a profitable long call or long put position. One of my favorites has to be converting the option position to a long butterfly spread. It...
View ArticleAAPL and Controlled Stops
If you are like a lot of other option traders, you probably avoided trading Apple Inc. (AAPL) during its recent earnings announcement. Now that the volatility event is over, you might be looking to...
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