Options Trading & Psychology

In my previous article, I alluded to the importance of trading psychology by discussing two types of trading errors: Decision Making Error and Data Error. Some readers have indicated their desire to learn more about it. In this article, I will dive deeper into the topic of option trading and trading psychology.

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Prolonging the Pain of a Bad Options Trade

After my article, Bear Call Gone Bad, I have received several emails requesting the trade fix. The aim of this article is to examine at least one of these possibilities. Again, I am not recommending anything but only explaining the mathematical side of this "fix," and it involves a two step procedure.

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Bear Call Spreads Gone Bad

In this article, I will go over three possible outcomes for a Bear Call spread at expiry. Those scenarios involve the price of the underlying closing within the spread, above the sold call, and below the sold call….

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Demystifying Options Approval Levels

After filling up some loopholes with my previous article, Back to the Basics, I continue the discussion here with another commonly overlooked area of option trading ? option level approval. Brokers assign to their clients, at the time when the account is being opened, one of several option approval levels supposedly based on the option trader's knowledge and needs.

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