A question that is often raised in the class when the topic of verticals is being taught is: When is the best time to do credit spreads versus debit spreads?

Sometimes, the worst thing that can take place for a new trader is to have a string of winners.

Josip answers reader questions

Recently, I taught a class in Houston, Texas, and many of the students had a hard time understanding what they should be actually focusing on when looking at an option chain.

In a class in Northridge, CA, we were looking at the market as it was stuck in a channel and we were considering placing a trade.

This article will examine the specifics of a butterfly trade that one of our students had recently taken without truly knowing what he did.

In a recent article, I wrote about the new Alpha options. Yet, I have found out while teaching an Options class that a lot of students are still struggling with the concept of just plain options.

Often I am asked to explain how to set realistic expectations for my targets, rather than having overly enthusiastic, optimistic, and somewhat unrealistic targets. One easy answer would be: Just check the readings of the ATR (Average True Range) on the chart for the time frame that you are planning to trade.

In order to determine the directional bias of the SPY, DIA, and QQQ, you use their various underlying instruments to determine whether you should go long or short on these index-tracking exchange traded funds.

Success is an open textbook exam; the answers are out there for all to see. Just like the prints/time and sales are there for all the market participants to see.

The footprints of gigantic option trades can easily be discovered on the tape.