Now let's use technical analysis to help illustrate where bear spreads might be appropriate…
Finding Good Candidates for Bearish Options Spreads – Part Three
read more
Finding Good Candidates for Bearish Options Spreads – Part Two
Exploring spreads for slightly bearish and moderately bearish options traders…
Finding Good Candidates for Bearish Options Spreads – Part One
Bearish spreads allow you to take a directional position (downward) on an underlying security while potentially reducing risk….
Best Practices for Trading Options in Volatile Markets – Part 2
As much as I'm tired of using and hearing the word, it's true that the market volatility in the past couple of months has been, well, unprecedented. If there was ever a time to be cautious with your trading strategies, I believe this is it. While there are certainly opportunities in the marketplace that haven't been available in years, the risks are commensurately higher as well…
Best Practices for Trading Options in Volatile Markets – Part 1
As much as I'm tired of using and hearing the word, it's true that the market volatility in the past couple of months has been, well, unprecedented. If there was ever a time to be cautious with your trading strategies, I believe this is it. While there are certainly opportunities in the marketplace that haven't been available in years, the risks are commensurately higher as well…
Bullish Spreads: Finding Good Candidates – Part Three
Bullish spreads allow you to swap profit potential for the opportunity to reduce risk. Spreads offer the ability to take a directional position, but unlike with straight long or uncovered (naked) options, the initial cost or maximum potential loss is reduced. We'll examine how to select the expiration month and strike prices to create bullish spreads based on your expectations…
Bullish Spreads: Finding Good Candidates – Part Two
Bullish spreads allow you to swap profit potential for the opportunity to reduce risk. Spreads offer the ability to take a directional position, but unlike with straight long or uncovered (naked) options, the initial cost or maximum potential loss is reduced. We'll examine how to select the expiration month and strike prices to create bullish spreads based on your expectations…
Bullish Spreads: Finding Good Candidates – Part One
Bullish spreads allow you to swap profit potential for the opportunity to reduce risk. Spreads offer the ability to take a directional position, but unlike with straight long or uncovered (naked) options, the initial cost or maximum potential loss is reduced. We'll examine how to select the expiration month and strike prices to create bullish spreads based on your expectations…
Reducing Portfolio Risk With Credit Call Spreads
As an options trader, would you like to be able to determine both your profit potential and exactly how much money you're risking? If so, credit spread trading may be for you. When a trader establishes a bearish position using a credit call spread, the premium he pays for the option purchased is lower than the premium he receives from the option sold. As a result, he still brings in money when the position is established, but less than he would with an uncovered position.
Reducing Portfolio Risk With Credit Put Spreads
As an options trader, would you like to be able to determine both your profit potential and exactly how much money you're risking? If so, credit spread trading may be for you. We'll start by discussing how to use a credit put spread in place of an outright sale of uncovered put options…
Managing Risk Using Options: Cash-Secured Equity Puts (CSEPs)
Exploring when and how to use cash-secured equity puts (CSEPs)…
Managing Risk Using Options: When To Use Collars
Exploring when and how to use collars to manage the risk of your equity portfolio.