Tips, tricks and strats for choosing the right put option…
How to Pick the Right Put Option
read more
Know When To Exit Your Options Trades – Part Two
Sell stops, averaging down and "the secret to surviving" when trading options…
Know When To Exit Your Options Trades – Part One
Knowing when to exit an options trade is the most-difficult part of trading options, according to a recent survey. But after several years of managing my shorting service and 25 years of trading options, I have some rules…
Profit Big on Someone Else's Dime – Write Calls on GILD & Buy Puts On SPDR
Profit Big on Someone Else's Dime – Write Calls on GILD & Buy Puts On SPDR
10 Reasons to Use ETFs When Trading Options
How do investors and traders cope with a market that has fallen more than 40% in just one year and survive until greener pastures return? Many traders have lived to tell the tale by trading both the long and short sides, or by taking a longer-term inverse (contra) Exchange-Traded Funds (ETFs) as a portfolio hedge. And it's the contras that have insulated them against the big slides…
Short-Selling With Put Options 101
The short-selling of stocks has achieved almost-mythical status among individual investors. We hear, all the time — on CNBC, FOX or from brokers or financial gurus — that "The shorts did it," "They are caught in a short-squeeze," "The shorts are bringing it down." Mention the word "short" and you can almost hear Darth Vader breathing through his mask. But all myths are based on some facts, so let's look at them…
Using Options To Trade the Banks in Early 2009
The fundamentals tell me the banks are going to take a big hit, but when? Let's go back to the put and call premiums. Many in the market are betting that the banks will have horrific earnings — the big ones report in mid-January — and their stocks will fall. Many also think this is already built in…