This article will elaborate once again on the crucial importance of the Financials. In order to lay down my case, I will break the article into three segments and each will build on the previous one.

A continuation of a deep dive into delta.

In this article, I will discuss a concept that is somewhat vague to many novice traders. First, I will define Delta in the most traditional way, and then I will provide an example of using Delta as a hedge.

In this article, I will address some of the questions that I have received from students over the past few months. The topics are strike price selection, exiting short option positions and current market analysis.

This article is the continuation of the previous one, Could the S&P Go Higher Without the Financials Participating?, which discussed whether the U.S. market could continue going higher when its biggest component, the financials, is approaching supply. I highly suggest rereading the last article for better comprehension of this one.

In this article, I will discuss whether the U.S. market can continue going higher when its biggest component, the financials, are approaching supply.

I was recently asked a question about option trading and the placing of stops. Although I answered that question right there and then, I felt that the topic of stop losses and options needed to be explained in more detail…

In my most recent option class in Milwaukee, Wisconsin, I was asked a very specific question by one of the students. He was assigned on the sold option even though on the April's expiry Friday the position, technically speaking, should not have been assigned to him. He asked me the same question that he has asked his broker: "Why was I assigned?!?"

One of the questions that often comes up in many of my option classes when teaching the credit spread strategy is what to do with the short leg. This entire article will focus on providing a clear answer to that question, while covering all other relevant details.

This article, on the topic of Covered Calls, will address three things: Buy-Write, Legging In, and the use of the MACD histogram as a timing tool for the sale of Covered Calls.

Every time we sell a call option contract, we take upon ourselves the obligation to sell our long stock. So how can our OTM covered call allow us to have greater potential to hold onto our long stock for greater participation on a move upside than if we had sold an ATM call, while still being protected from not just some, but the majority of the downside risk? Trade a collar…