There are people that believe stock options are dangerous, risky, and are to be avoided in place of safer shares of stock. They know it is possible to lose your entire account trading options. If you are selling options short then it is even possible to lose more than your account is worth if you use …
The key to managing risk in options while trading them in place of stocks is to roll them over when you have nice profits and would like to stay in a trending stock. If you buy a SPY ETF call option contract with a $200 strike price for $300 when SPY is trading at $203 and the ETF runs …
How can an option trader enter into a position, risk only $500 of their total trading capital but control $50,000 worth if stock? The numbers will vary greatly depending on the option pricing factors of intrinsic value and the Greeks but the point here is that it is possible to control a large dollar value of shares with a small outlay of cash. You …
As a stock trader have you ever wished there was a way for you to bet on a huge in either direction?Then he thought about the option strategy Optionz Traderz had used in the past. Their is an option strategy that allows you to do just that; they are called long Strangles and Straddles. It is possible to …
Many traders are very hesitant to short a stock because while a stock you are long can only go to zero a stock you are short can go to infinity. While I have never personally seen a stock go up to infinity Apple’s run this year and the internet stocks of 1999 did make a …
Even though Apple is THE monster stock of the last 10 years and I love the fundamentals and I love the company story, I still have a rule in my trading plan: I do not hold through earnings. Why? I could catch a $40 pop after …
My trade going into the Greek elections is to stay in cash as I have been almost all week. I am not disappointed this week I will let the day traders make their money in this market and watch the bears get mauled by central bank interventions while I sit …
A down trending market is not the same as a range bound market or a bull market.The loss of the 200 day moving average and it not being retaken by the close is a big red flag for the potential beginning of a bear market. Bear markets do not have defined supports they can fall …
What happens when you are in the right market at the right time using a trend following system to trade monster stocks? Amazing returns. The best returns of my 13 year trading career by far. Here are the principles that let me seize the opportunity and have an amazing quarter. …
The Principles for my 51.7% Return in the 1st Quarter Read More »
If you are interested in trading options the first place you must start is having a basic understanding of what determines there price. Understanding what determines their value and how they move in step with the underlying stock is the first crucial step before you start trading them. Not understanding what can cause sudden drops and spikes in …
