“Fish see the bait, but not the hook; men see the profit, but not the peril.“ -Chinese proverb Options are both one of the greatest wealth building tools ever created and a quick way to lose all your trading capital if you over leverage and disregard the odds of your trade. Options can literally […]
Option Traders 7 Common Mistakes Read More »
“Fish see the bait, but not the hook; men see the profit, but not the peril.” -Chinese proverb Options are both one of the greatest wealth building tools ever created and a quick way to lose all your trading capital if you over leverage and disregard the odds of your trade being a winner. Options
7 Common Mistakes Option Traders Make Read More »
The delta of a stock option is how much it moves in relation to the underlying stock dollar for dollar. A .50 delta means it moves .50 cents for every dollar the stock moves, a .90 delta means the option captures .90 for ever dollar move in the under lying.
Option Delta: How much Bang do you get for your Buck? Read More »
Fish see the bait, but not the hook; men see the profit, but not the peril. Chinese proverb. Stock options are not lottery tickets, chips in a casino, or a path to easy street. They are tools for the transference of risk from one person to the other. When trading options you must understand where
Stock Options: 10 Ways to Move From Peril to Profits Read More »
The strange thing about trading is the vast majority of traders lose money. Most studies put it at 90% as the amount of traders that are unprofitable in the long term. How can this be? The majority of traders are trading on emotions and predictions instead of what
10 Ways I Trade With the Winning 10% Read More »
The following excerpt is taken from my book Show me Your Options co authored with Christopher Ebert the “Option Scientist”. (The following chat is set inside a facebook group in 2011, Apple has appreciated greatly since this book was published). Income Investor: I heard you were the group’s resident guru on stock options. I sell
What is an Inverse Covered Call (The answer may surprise you) Read More »
Options are great tools in the hands of knowledgeable traders but options are also dangerous in the hands of a gambler. Option contracts can be used to manage risk or expose your account to excessive risk that can lead to ruin. They can be used to put the odds in your favor or
Ten Great Things About Stock Options Read More »
Here are principles from Dana Glante from the Stock Market Wizards book by Jack Schwager on how she made double digit returns year after year from her short only trading strategies even in bull markets. Steve Watson in the same book contributed the last one. RED FLAGS: High receivables (large outstanding billings for goods and
How To Short Stocks like a Market Wizard:10 Red Flags Read More »
Option delta is represented as the velocity of a price change in an option, given a 1 point move in the underlying asset and is usually displayed as a decimal value. Delta values range between 0 and 1 for call options and -1 to 0 for put options. The delta
Option Delta: How Options Move Read More »
I believe a surprisingly dangerous way to play options are to sell covered calls. This may sound strange to most option traders as it is the most safe convenient ways to use options for long term holdings. Many Individual Retirement Accounts (IRAs) will even allow participants to write covered calls on their stock holdings.
A Dangerous Way to Use Options Read More »