In my most recent option class, I was asked to cover the topic of Covered Calls in greater detail than what is normally covered in the class presentation. As always, I pulled up an example thrown at me by my students and started studying the chart. The next step becomes an issue whether to enter into the trade at the same time (buying the stock and selling the call) or in two parts…
The final segment in our three-part exploration of the butterfly spread.
Many times I receive interesting questions from our graduates in my email box, and occasionally, I like to share them with our general reading audience. Here are some of the questions that I was asked recently. Some questions are related to the topics of options, others to stop losses, while others are on the topic of ETFs. Hence, in this article there is a bit for everyone.
This expos?, the second in a series of articles on the topic of Butterfly spreads, will visually show how to place a Call Butterfly spread using the TradeStation platform. The actual trade is NOT meant to be a trade suggestion.
This article is the first in a series of several articles that will address in greater detail the option strategies known as Butterflies. In this one, I am trying to introduce the basic concept of a Butterfly without providing any specific examples. Specific examples will follow in the subsequent newsletters.
Let us turn our attention towards Horizontals, which are also known as Time or Calendar spread trades.
During one of my option classes, some of my students were really having a hard time grasping the concept of the Greeks, namely the Delta and Gamma, as well as their relationship to each other. In this article, I will focus on explaining those concepts to the readers in a similar way that I did for my option students.
Often in my option classes I ask the students a question that only on the surface appears to be tricky: "What comes first, the price action on the chart or the print?" Most of the time, the students give me that puzzled look which tells me that most likely they are somewhat confused, yet as the discussion commences, the perplexity becomes more noticeable.
Basically, in this article I will share with the readers an option/choice that a trader could have selected instead of going along with his broker's advice of selling a naked straddle.
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This is the first of a couple of articles on the topic of how any painful trade can hold a valuable lesson…
The goal of this article is to explain the last of the four possible vertical spreads which will bring this series of five articles to a conclusion. Once again, this vertical debit put strategy is not meant to be a trade recommendation for it is just a theoretical explanation…