Options Theory: What a Covered Call Trader REALLY Wants
July 26, 2018
I think I could write about covered calls and naked puts every single week and still have plenty to say at the end of the year.
Every Thursday our resident options addict, Tyler Craig, will be at the helm to help you demystify derivatives and better understand what truly makes them tick. Enlightenment awaits.
July 26, 2018
I think I could write about covered calls and naked puts every single week and still have plenty to say at the end of the year.
July 19, 2018
On paper, naked puts and covered calls are equivalent positions. Or, as the cool kids say – synthetics. That means they deliver the same profit or loss at every possible stock price. For the relationship to hold true, however, you have to use the same strike and month.
July 12, 2018
Misguided lemmings who tout options as riskier than stock don’t realize that they’re painting with too broad a brush. The reality is options can be safer than stock if used properly.
July 5, 2018
In response to my recent commentary on how to properly catch a falling knife, Victor asked me to elaborate on the following remark: “Retracements after impulse moves have a high chance of failing.”
June 28, 2018
Come learn more about the options strategy I call “The Knife Catch”.
June 21, 2018
Ever since fully understanding the role of randomness in trading, I’ve made it a point to mention it to any who will listen. It makes an appearance in both Options classes I teach for Legacy, it’s part and parcel of a discussion on system development, and it’s a core focus during mentorships I have theREAD MORE
June 7, 2018
Here’s my take on building a Naked Put selling system.
May 31, 2018
Learn how to buy dips and sell rips with the Short Strangle.
May 24, 2018
Today, we’re focusing on 2 bi-directional strategies: Long Straddle and Long Strangle
May 18, 2018
Last Update: July 2021 Today we’re combining options and technical analysis. It’s a match made in trader Heaven and thus delivers happiness and, hopefully, dough – lots of dough. Tackle’s resident wisdom dispenser, Mark, suggested the topic, so I’m running with it. First, let’s make sure we all understand support and resistance. Then, we’ll talkREAD MORE
May 10, 2018
How to Day Trade Options? Coach Tyler Craig answers this question filled with promise yet potential ruin.
May 3, 2018
One of the side benefits of teaching options classes is it continually reinforces to me the power of using derivatives in your investing. Just last night we dove headlong into the mighty covered call strategy, and I got to entertain the crowd with a tantalizing tale of cost basis reduction. As oohs and aahs wereREAD MORE
April 26, 2018
I’ve traded through about 48 different earnings seasons and for the lion’s share of those I was writing about my adventures. At this point, I’ve covered how to think about, protect against, and speculate into these quarterly events from virtually every possible angle. The challenge each time I trot out these topics is to colorREAD MORE
April 20, 2018
Last update: July 2021 What happens when you combine two sweet strategies? You get a position that’s a hybrid of, well, two sweet strategies. What if a naked put and a covered call fell in love and had a baby? It would be a covered strangle. Now, what if a short strangle and a longREAD MORE
April 12, 2018
The systems of successful traders are as wide and varied as the traders themselves. But they all possess one essential element: edge. Consider it the reason why the system produces profits over time. Many traders make money. Some know the specific edge of their system. Fewer still can articulate it. Here’s an example. The CondorsREAD MORE
April 5, 2018
I’ve sat at the feet of two traders who were masters at scaling. One deployed the tactic with options, the other with forex. I caught a glimpse of the idea’s brilliance from the first gunslinger, but it was the second’s explanation and illustration that really sealed the deal for me.
March 29, 2018
This week’s tech wreck provides a tantalizing teaching opportunity. Let me say at the outset that this is merely an example, and is not a trade recommendation. It’s time you learned how seasoned option aficionados use oversold markets and high implied volatility to sell pumped-up premiums. We’ll also sprinkle in the scaling-in technique to guaranteeREAD MORE
March 25, 2018
Years ago the CBOE rolled out a slate of strategy benchmark indexes. One of them is the CBOE S&P 500 BuyWrite Index ($BXM)
March 18, 2018
Last update: August 2021 For the degenerate speculator, long calls are the best. They offer a leveraged payoff that keeps you coming back for more. Of course, that’s if you’re right. The challenge is they’re dang tricky to minimize loss with if prices sour. But that’s a topic for another day. Today we’re talking aboutREAD MORE
March 11, 2018
Today we’ll explore a time-tested tactic to avoid seller’s remorse forever. It’s known as the stock replacement strategy: long calls.
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