The Butterfly is an option position that is composed of 2 vertical spreads that have a common strike price. In other words, butterfly trading involves an opening position where options (either calls or puts) are bought (or sold) at 3 different strike prices. The way in which these options are created makes the butterfly a [...]
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Using theWizard helps you avoid the confusion many people feel about investing. It offers clear and precise strategies for trading. It not only gives you clear, accurate signals for when to buy and sell your stocks, it also shows you the correct methods of managing your trades to achieve your long term goals.
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I started trading options in the late 90’s. After selling my first option and collecting an immediate credit I and became an option seller for life. I became a student of option selling strategies and started selling covered calls on stocks I brought and owned. I was doing OK collecting premiums month after month until [...]
I started trading options in the late 90’s. After selling my first option and collecting an immediate credit I and became an option seller for life. I became a student of option selling strategies and started selling covered calls on stocks I brought and owned. I was doing OK collecting premiums month after month until [...]
I am an active trader of option credit spreads on the SPX, NDX and RUT broad based stock indexes. I am very conservative and only enter into trades that have a very high probability of being profitable. I write OTM Bull Put Spreads first. During months when the market is moving sideways or [...]
For option sellers it is disconcerting to hear people say that selling naked options is extremely risky because it carries the threat of âunlimited losesâ. Nothing is farther from the truth! Itâs a myth! Itâs about time we correct this misconception and put this fear to rest.
While theoretically the selling of naked options carries [...]
The 2008 recession and stock market crash is the worst financial and economic crisis since the great depression. By Feb 2009, the Dow has dropped almost 50%, erasing all its gains since 1998. In terms of absolute points, the Dow has dropped over 7000 points, which is more than the entire Dow index before 1998. [...]
“Are you, nuts?! You want me to risk part of my savings trading options? This whole covered calls idea sounds like just another one of those crazy options strategies that sound great, but don’t deliver in the end.”
My pal was a normally a mild-mannered sort – very reflective, always weighing the consequences rationally before [...]
It’s true – you can own your favorite stocks at no cost or at deepest discounts! Learn the highly guarded, secret Option trading strategies professional investors use to make steady profits, year after year, no matter what the financial markets do. This article will show you the step-by-step process of using Options to get the [...]
Iron Condor Spread is the combination of a Bullish Vertical Credit Spread and a Bearish Vertical Credit Spread on the same underlying asset. Depending on how the spreads are constructed, option traders will potentially be able to obtain twice the collect premium over a single spread position. Since there are bullish and bearish spreads involved [...]