How to sells calls and puts

Traders sell calls and puts depending of their assumption. They will receive option premium upfront by selling options. In this yield-seeking environment, selling options is a strategy designed to generate current income. We sell options with high implied volatility. We want the option to expire worthless or we buy them back when they are much cheaper. If you the options […]

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How to trade stock options

The “Experts” Claim That Options Trading is Risky Yet Options, When Used Correctly, Can Reduce Overall Investment Risk and Even Provide a Steady Stream of Retirement Income…  When I first learned about options trading I was completely skeptical. The above statement sounded “too good to be true“.  We will teach you how to make money in up, down, or sideways […]

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Selling Stock Options 101

If you want to start with trading, selling stock options is not the the first thing what comes to your mind. There is a good chance you immediately think of one thing: investing in stocks. Investing in stocks Why do people choose stocks if they think about investing? Learn the fundamentals on how to invest in stocks, including approaches and […]

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Can you learn Trading out of a Book

Do you expect to become a doctor, just by reading dozens of books? Or do you think that a doctor needs practice, needs to think about what he’s learning? Gaining knowledge and reading books is a very important step in becoming a better trader. But that’s not enough! You will certainly not become a successful trader just by reading 20 […]

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Is Passive Trading interesting at all?

Passive Trading is done by people who want to create an extra income. A passive trader is often interested in investing their money, but they do not want studying financial statements, markets, and even weather reports. This type of investor laughs at the good luck mantras and charms used by some investors. They are often happy to put their money in the hands […]

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The Binary Options Illusion

Binary Options are like regular options in that they allow you to make a bet as to the future price of a stock. However, binary options are different in that if the “strike price” is met by the expiration date, the binary option has a fixed payoff of $100 per contract. It doesn’t matter if the stock price is a […]

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LEAP Options or regular Options

Most options are traded within 90 Days to Expiration. LEAP Options are just like regular monthly options except that they have a long time to expire. LEAP options are options with DTE of  more than 1 year from today. LEAP stands for Long-term Equity Anticipation Security. Investors will pay a lot of money for options with much days to expiration. […]

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Should you buy Call Options

The stock markets have created exchanges that trade Stock Options. These stock options come in two types. There are call options, which are the right to buy shares of a stock at a certain price by a certain date. And there are put options, which are the right to sell shares of a stock at a certain price by a […]

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Option Exercise & Assignment

People that sell options have to deal with option exercise risk. When you have sold options that are in the money some one can decide to use his right. You have better chances of making profit when you sell options than rather buying. With selling options you receive option premium. The buyer has only a limited time to exercise his […]

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Investing 101

Have you ever wondered how the rich got their wealth and then kept it growing? Do you dream of retiring early or of being able to retire at all? Do you know that you should invest, but don’t know where to start? If you answered “yes” to any of the above questions, you’ve come to the right place. On this […]

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Tips for beginning option traders

Option trading may be daunting for beginning traders, but with the right foundation and a gradual investment of funds, you can expect to see significant returns. Here are a few tips to help you make smart investment decisions. Do not invest money you cannot afford to lose. Make intelligent decisions about what you can afford to invest. Selling Options is […]

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Know when to take Profits

  When you start with trading, you often will hear a number of pearls of wisdom. Keep your losses small, let your winners run, no one ever went broke taking profits. You can keep your losses small at order entry. It is possible to select defined risk trades and you do not trading too many contracts. It is not a […]

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Correct Trading Attitude

Trading is one of the most exhilarating activities one can get involve with. Every day or each moment price movement can dramatically increase you well being. It can increase of diminish your capital of the active trader. The winnings can be swift and enormous, while the losses can take you out of the game. The potential to acquire fast and […]

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How to Trade with an Edge?

What Exactly is a Profitable Edge? Traders are constantly looking for a trading system that hits 100% winners or a system that never makes a losing trade. This for many reasons is impossible and further below in this article it is explained in more detail why achieving an 100% win rate is simply impossible. So firstly what is an edge? […]

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Trading Diagonal Spreads

diagonal spreads

A Long Put Diagonal Spread is the combination of a long put vertical spread and a put calendar spread. This results in a bearish position that can benefit from an increase in implied volatility. A Long Put Diagonal Spread is usually used to replicate a covered put position. Use this strategy when you have a bearish direction assumption. Typically we […]

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