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Why selling options?
You can use the very same strategy as that employed by the profitable industries of insurance companies and casinos to make 40%, 50% return or even more, on a consistent annual basis. Very few investors know the concept of selling options and apply it the right way. If done correctly, the market conditions, the political(…)
Continue readingSpread trading using options
Spread trading is a simple concept and using it with options involves combining two different options, as part of a limited risk strategy. The industry categorizes spreads as “complex trades”, like they wanted to keep traders and investors away from using them. As a result, the majority of options traded on the U.S. exchanges take the(…)
Continue readingWhy trading options?
I like trading options because they are the most versatile financial instruments I’ve traded in 17 years. I have been trading stocks, bonds, futures and options on stocks, indexes, currencies and commodities and I’ve found options to be the best instrument you can use to implement your trading & investment strategies.
Continue readingPowerful Weekly Options – Part II
In the last two editions of the Options Scan I gave you few reasons why using weekly stock options in your trading can be very beneficial. Let’s continue with some more reasons and then look at an example on why the weekly options provide a greater profit potential than monthly options. One of the(…)
Continue readingTrading options is like playing Lego
Trading options is like playing Lego in so many ways. You pick up small Lego pieces – those would be single options in trading – and your imagination is the only limit for what you can end up building depending on your trading objectives. Kids discover Lego sooner or later in their childhood and then(…)
Continue readingPowerful Weekly Options – Part I
Weekly options are truly lovely if you are a chart reader. The greatest advantage is the short time frame, which is beneficial to sellers because you are at risk for a very short time. The CBOE statistics show that approximately 80% of options expire worthless.
Continue readingHow to protect profits with options?
The stock could fall to zero, but you would still be able to sell at $45. If the stock rises above your Put, you can still sell the stock and close the Put. Using a Put to protect your profits places you, not the market, in the driver’s seat. You can also employ additional option strategies to create even more profit.
Continue readingDay Trading Options
Options provide a great deal of leverage with limited risk. This is a good start for anyone who wants to day trade and has limited margin. However, to be successful in day trading options, you have to be discerning in the equities you choose to day trade.
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