One of the major differences when learning to trade options as opposed to equity trading is the impact of time on the various trade instruments.
Butterflies, Expiration, the Importance of Time, and Cindy Crawford
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The Iron Condor
An iron condor occurs when a trader combines a bear call spread and a bull put spread. It is essentially combining two credit spreads as one trade.
Moneyness and AAPL
Moneyness isn?t a word, is it? It won?t be found on spell-check, but moneyness is a very important term when it comes to learning to trade options.
Weekly Options and Theta
Premium sellers see the most dramatic erosion of the time value (theta) of options they have sold during the last week of the options cycle
Delta and Another Famous Greek
Delta is arguably the most heavily identifiable Greek (unless you count Socrates or Aristotle) especially by individuals learning to trade options.
Consider a Directional Butterfly Spread
Butterfly spreads can be great market-neutral trades. However, what some traders don?t realize is that butterfly spreads can also be great for trading directionally.
AAPL and Risk Control
Here are a few thoughts that should be considered on AAPL or any other position you may enter.
The Stock Repair Strategy
The stock repair strategy is a strategy involving only calls that can be implemented when an investor thinks a stock will retrace part of a recent drop in share price within a short period of time
Math is Beneficial for Option Trading
One of the greatest advantages when option trading is the initial flexibility of the position and the ability to adjust a position to match the new outlook of the underlying.
Debit Spread Versus Credit Spread
How do you decide between buying a debit spread and selling a credit spread? This is inherently a discussion that could fill a thick book so I will just try to give you a few thoughts to consider.
Thoughts on Being a Great Trader Part II
About a month ago we talked about option traders really being committed to reaching their trading goals.
Long Calls and Bull Call Spreads
With the Dow and S&P 500 falling just off their all-time highs recently and yet refusing to move much lower at this point, it probably makes sense to keep at least a few bullish trade ideas in your trading stable.