Your first Option Trade

What did we consider when we made our first trade? We trade options because they have better odds to realize a profit than with stocks. You have to look for the right  opportunities and have to decide whether we buy or sell options. We also look at other factors as Volume, liquidity, Implied Volatility, and Probability of Profit before we […]

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High Implied Volatility for more Options Profit

Before explaining high Implied volatility we look first what Implied Volatility (IV) is. IV is one of the most important metrics to understand when trading options. Implied volatility is the estimated volatility, of a stocks price. Implied volatility increases while the market is uncertain about the changes in the stock or sector market, about earnings, companies decisions, or if people are bearish. The market is […]

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Benefit from Options Leverage

In this post we will give you an Understanding options leverage and show you how to profit from it. Leverage can be very powerful when it comes to investing because by using leverage it’s possible to turn relatively small amounts of capital into significant profits. With many financial instruments, such as stocks, the only way to take advantage of leverage is […]

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Covered Put Explained

A Covered Put has less risk than selling 100 shares of stock. The strategy is completely the opposite of the covered call.  This strategy is used by traders that has a bearish assumption. That means that they use this option strategy for stocks that may drop in price. The way you set this strategy up is by shorting stock and selling its associated put […]

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Why would you start Options Trading ETFs

When we start with options trading should we start trading single options or should we start with ETFs?  Exchange-traded funds or ETFs are one of the most important and valuable products created for individual investors in recent years. ETFs offer many benefits. They are an excellent vehicle to achieve an investor’s investment goals. An ETF is a basket of securities […]

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