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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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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Can you predict the markets

Who does not want to predict the markets. It’s easy to get trapped in the news headlines telling you what the market is doing today. However, the most successful investors have learned to tune out the day-to-day market “noise” and focus on Volatility. Some news stories are important, such as earnings reports, but for the most part, small up and […]

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Sell Premium during Holidays

We like to sell options in order to receive premium. The idea is to sell options with let say 45 days to expiration and that these options expire worthless. In the weekends and holidays people are away from their desk. Traders are taking days off, and companies earnings announcement are delayed. These may be excellent times to sell option premium. […]

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Sell Options with high Implied Volatility

For People who are Selling Option Premium, High Implied Volatility is very important. Options are more expensive than normal and they return to then mean easily. Traders can make money when the stock movers but as well when it moves up and down and returns to its original price. Stock Markets, Stock Option, Futures and commodities are moving all the […]

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Advantages by Trading Implied Volatility

Trading Implied Volatility is selling the premium of the volatility expectation that is priced into individual options. The implied volatility of an option is actually backed out of the price of the option. All the inputs of an options pricing model are known (time to expiration, strike, price, interest rates) except for the volatility that the option is pricing in. […]

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How to Collect more Option Premium

Option sellers want to become more efficient in trading. They are always attuned to maximizing odds, sellers key toward being efficient, and efficiency often can mean getting the most bang for your buck. To option sellers, that means collecting big premiums. What small changes can you make in your trading techniques so that you can make more profit. How can […]

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Trading Implied Volatility

Trading Implied Volatility is a key concept for option traders. Even if you are a beginner, you should try to have at least a basic understanding. Options with a high Implied Volatility are more expensive than options with low IV. This knowledge gives us an advantage when we sell options and receive option premium. Option volatility is reflected by the […]

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How to Make Money with Options

Selling options is another way to profit from option trading. The basic idea behind the option selling strategy is to hope that the options you sold expire worthless so that you can pocket the premiums as profits. Selling Options is an excellent strategy to make money with options. The option premium represents the entire income the option seller can hope […]

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What is an Stock Option?

While a stock option may sound complicated and appropriate only for sophisticated investors, they are quite easy to understand and actually quite commonly used in everyday life – although they are called by different names. In fact, we’re sure that everyone reading this article has used a call or put option at one time or another. If you don’t believe […]

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