It takes a lot of dedication, courage and a well thought out plan to make it as an elite athlete, and those same attributes are what it takes to learn to trade and become a successful options trader.
A calendar spread, or what it is sometimes referred to as a time spread or horizontal spread can be a simple and quite useful option strategy.
You might start by asking yourself are you the great options trader you thought you would be by now or have you ever wondered what truly makes a great options trader?
How does gamma affect an AAPL long call?
An option strangle is an option strategy that option traders can use when they think there is an imminent move in the underlying but the direction is uncertain.
Selling a credit spread involves selling an option while purchasing a higher or lower strike option (depending on bullish or bearish) with the same expiration and with the short option being more expensive than the long option.
There is always potential for the market or individual stocks to move lower. I
The option ?greeks? help explain how and why option prices move.
Understanding the pros and cons of an option spread can significantly improve your option trading.
There has been more talk than usual about Apple Inc. (AAPL) before and now just after the split.
Many option traders, especially those that are new, initially buy deep out-of-the-money options because they are cheap and can offer a huge reward. Unfortunately many times, these ?cheap? options are rarely a bargain.
In my opinion, one of the most helpful things to do to improve your option trading is reviewing your trades