This is a guest post by Christopher M. Uhl, CMA from 10minutestocktrader.com Earnings are typically an amazing time to sell elevated levels of premium in options. The uncertainty that surrounds an earnings announcement will cause the market makers to pump up the options pricing months in advance, and with the more recent broad market volatility, […]
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Here are twelve fast facts about writing covered call options on your stock holdings: A covered call gives the buyer of the call the right but not the obligation to call away your stock at the strike price. The option chain you want to trade has to have liquidity to avoid losing too much in
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This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. Make sure you’re aware of these option concepts before trading them. Options are a zero-sum game. You don’t own the underlying, so
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This is a guest post by Christopher M. Uhl, CMA from 10minutestocktrader.com Weekly Expiring Options: Easy Profits or Potential Headache? Wouldn’t it be great to sell options on Monday and collect a paycheck on Friday as they expire out of the money? That’s a trader’s dream. Unfortunately, this can also quickly become a trader’s nightmare.
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This is a Guest Post by Jayce Bryson, he spent the first 10 years of his career as a credit analyst and then portfolio manager for a super-regional bank where he managed a half billion dollar senior loan portfolio. He started Signalee to show new traders how to take advantage of volatility to consistently grind
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This is a guest post by Drew Hilleshiem , he is the Co-Founder and CEO of OptionAutomator.com, you can follow Drew @OptionAutomator on Twitter. 5 Options Trading Strategies that are Less Risky than Buying and Selling Stock Do you know what’s inherently more dangerous: a knife or a gun? Don’t Google the answer because all
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This is a Guest post by Charles Leworthy of ForexBinary101. Measuring the fair value of a stock option seems like guesswork in most cases. However, it is important to understand the key concepts that dictate the numbers for price options, and how much influence they have. Let’s take a better look at how dividends on
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The following is a guest post by Kim Klaiman @SteadyOptions_ Is Options Trading Really Risky? There is a general misconception in the trading community that an option trading is very risky. Options can be risky, but they don’t have to be. Options can be less risky or more risky, depending on your risk tolerance. They can
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A common misunderstanding among new option traders is that 90% of all options expire as worthless, so a seller of option premiums will have a higher win rate than a trader that buys options. This belief doesn’t take into account a statistic published by the Chicago Board Options Exchange (CBOE) that only 10% of option contracts are actually held until expiration and
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Thou shalt make risk management your #1 priority when trading options. Thou shalt not let greed be your guide to position sizing. Thou shalt not kill your trading capital by selling too much option premium against a trend. Thou shalt not trade option contracts before you fully understand their pricing model. Thou shalt not
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