An options trading rolling strategy is a strategy where you move your strike point to a new strike point during the month. Rolling basically means moving. In the world of options trading, this movement happens when you move positions from one strike point to another. That can either happen when you move [...]
One secret of many traders’ success in whatever type of financial trading market is their use of proven methods and strategies. In forex options trading, it is not different. Currency options trading allows for the use of a variety of option strategies, which are employed to engineer a risk profile to the underlying security’s movement. [...]
I make a living out of trading options…and a pretty good one at that!
For a long time I couldn’t say those words as I struggled just to hold on to my capital, let alone make it grow.
Though there were several reasons why I struggled (including being grossly undercapitalized and at the same [...]
Most trading literature on option strategies tend to lean towards mathematical formulas to define the construction of a spread. Guy Cohen has chosen to use pictorial logic, even with the Greeks unique to a particular strategy, to piece together the legs of a spread with diagrams.Diagrams that connect with each other are a much more [...]
Option trading remains a mystery to many new traders. There are elements to option trading that traders should know about to make trading easier. In this article, I give an example of how an options trader might use implied volatility in his trading. Then, I discuss implied volatility charts and how they are created.
There is [...]
There are many index iron condor & credit spread options advisory newsletters on the market today. The index iron condor options strategy is popular because it’s relatively easy to understand, it doesn’t require options analysis software to visualize the trade, and it generates an excellent monthly income of 6% to 10% ROI per month. Most [...]
All stock market multi millionaires must be able to profit under any kind of market conditions. If you are able to profit only when stock markets go up, then you will find it a gargantuan task to ever have any sustainable success, much less become a stock market millionaire.
Yes! It is possible and easy to [...]
Most people lose money in a bear market. Do you remember the tech bubble and recession in 2000-2002? This article will discuss three option trading strategies that can make you big profits in a bear market or recession.
Option Strategy No. 1 – Buying Put Options
It is fairly easy to purchase put options. This option trading [...]
When vertical spreads are mentioned, they quite often come with monikers such as ‘bull’ and ‘bear’. This lends most to think of vertical spreads as directional plays which is true. However, vertical spreads can be used to take advantage of two other potential trading opportunities – time decay and volatility movement.
If you are looking for [...]
When traders speak of putting on calendar spreads, they normally refer to buying the further month options and selling the closer month option. While I can not argue with this, it is not best for all options.
I am going to be general in this article because prices change and I don’t want to cause confusion.
For [...]