Make Money when Options Expire

Smart traders make money when Options Expire. They earn money by selling time premium or time decay. Time decay is the enemy of the option buyer but is the BEST FRIEND of the option seller, especially when the options expire (worthless). The concept of selling options and waiting for the price to decay is a slow process. With selling option […]

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Trading FAQs

1. What are options? Options are contracts used primarily to reduce risk, giving the holder the right but not the obligation to buy a certain stock for a certain price by a certain date. Options expecting prices to rise are ‘call’ options; those expecting prices to drop are ‘put’ options. Key components of an option are the premium, strike price […]

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Reducing the Cost Basis

When talking about Cost Basis we will review the cost basis of stocks and options. Further we will look how to reduce the cost basis of options. The Cost Base or Cost Basis is the average cost of a stock which you acquired in multiple transactions over a period of time.   Cost Basis of Stocks Here is an example […]

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Collect Option Premium in every market condition

Would you like to collect option premium, that is to earn money regardless whether the market is going up down or sideways?  We will describe how to use two complementary strategies for collecting short term money. We start the strategy with selling a put spread. We do that time after time until we got assigned. Then we apply our second […]

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What Option Types does exist

Before you begin trading options, you should know what exactly is a stock option and understand and what option types does exist. The two basic types of option contracts – puts and calls. Learn how they work and how to trade them for profits. There are two options types: calls and puts. You can buy them or sell it. When […]

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