Options Articles
How to Trade Options: A Beginner’s Introduction
Options are referred to as a leveraged financial instrument because they allow you to multiply your gains and control your risk more in a trade. For serious traders, I consider options mastery to be an essential, and would never leave them out of my own portfolio. But for people who are still new to the game, there’s a lot to be learned. If you need some tips and startup information for trading options, click here to check some out.
Playing Vertical Spreads: How to Trade Healthy Profits with High Probability
Everyone loves to have the odds in their favor, and trading options is no exception. That’s just one of the reasons why I love playing vertical spreads. They are a high probability trade with controlled risk and as simple as ABC. Like most high probability trades, vertical spreads typically profit when all legs of the spread expire worthless. Best of all, you don’t have to forecast future price movement, you merely have to pick a single direction that the underlying will not touch, which takes a ton of the pressure of trend sniping out of the trade. Click here to find out more…
How to Write Covered Calls: Making 5 Percent per Month the Easy Way
A lot of people think options trading is riskier and inherently more reckless than trading standard financial instruments like stock and exchange traded funds, but that simply isn’t true. In fact, there is one simple and low risk option trading strategy that has consistently outperformed the market almost every year, and continues to give option traders healthy profits with low risks. It’s one of my favorite strategies. Do you know what that is? Click here to find out…
How to Read Risk Graphs to Calculate Profit and Loss in a Trade
So we all know that option trading means you might lose some money, but like any business venture, without risk there is no possibility for reward. So the golden question is, how do you manage that risk? In my opinion, there’s no better way to account for it than analyzing a risk graph. I’m sure you’re familiar with how these work and what to do with them in an options trade, but to those of you who need a little help, I came up with a good summary and some pointers. Click here to take a look…
Calendar Spreads: A Guide to Healthy Profits with Risk Control
It’s easy to make money when the market goes up or goes down, but do you know how to make money when it goes sideways? There’s an insanely simple, profitable and controlled risk options trade you can play that does exactly that. The secret lies behind the fact that it profits when all legs of the spread you sell expire worthless. You could probably learn it in a few minutes and immediately start adding cash to your account from the trades. Click here to find out more…
Conservative Profits and Zero Downside Risk with Collars
I know there are a wide variety of traders out there from the most bull headed and aggressive to the safest and most conservative investors of all. For those of you who believe in conquering risk above all else, I know a great strategy you can play that will still yield you healthy returns. Best of all, this financial strategy contains zero downside risk. That’s right, no matter what the markets are doing, you are covered and can count on maintaining your equity in this trade. Do you know what it is? Click here to find out…
Iron Condors: Neutral Trading for Quick Profits
I’m pretty big on neutral trading because it seems like the market usually doesn’t go anywhere too drastic. That’s why I often add iron condors to my options portfolio, and recommend them to others as a way of profiting from a lack of movement. The genius of the spread relies on manipulating probability to make money when every leg of this spread expires worthless, which the vast majority of options do. Have you used this one in your portfolio at all? Click here to find out how…
Credit Spreads Versus Debit Spreads
There are two basic advantages an option trader can have: the probability of winning or the potential of generating huge profits. Which would you prefer? There’s a kind of spread for each trader. Typically, credit spreads have the favor of probability whereas debit spreads have the favor of potential gains. Do you know the difference? Click here for some free tips…
Three Great Trades for Under $500
So you want to trade but you’re afraid of what it’s going to do to your bank account? Why not take a look at some of the simple, profitable options trades you can play for under $500? It’s true, you don’t have to be a millionaire to get started in the financial markets! If you’re enthusiastic about trading but are strapped for cash these days, I have the answer you need. Click here to find out more…
