Tackle Today: The Options Heuristics Series – Intro
October 9, 2018
≈ Keep it in your pocket. ≈
Today is the starting day of a new series here on the Tackle Daily Email: The Options Heuristics Series.
By definition—and there are many around— a heuristic is “an approach to problem-solving, learning, or discovery that employs a practical method, not guaranteed to be optimal, perfect, logical, or rational, but instead sufficient for reaching an immediate goal.”
“Heuristics” is also used within the Cognitive Bias framework: “Cognitive heuristics are simple, efficient rules, hard-coded by evolutionary processes or learned, which have been proposed to explain how people make decisions, come to judgments, and solve problems, typically when facing complex problems or incomplete information.”
There you go. We couldn’t say it better ourselves.
Our inspiration? The Clubhouse community. How can we explain the basics of Options so that our students can really learn, without getting confused with so many concepts, terminologies, and strategies?
On each day you will have a 3-by-5 flash card as the Chart of the Day. We will make it so that you can download it, print it and keep it with you in case you need to refresh some of the concepts. We will keep all the definitions very simple, short and sweet.
Be aware that we are NOT replacing the Options 101 series, available for Tackle Pro Members. Instead, we are adding to the process. Here at Tackle, we do anything to make our students learn better and trade smarter.
Chart of the Day
Confused
Many new traders few a little bit confused with so many strategies, concepts, and terminologies when it comes to Options trading. Simplicity is the key in this business. Like veterinarians, you don’t need to study and treat every animal that exists on the planet to call yourself a veterinarian. You can be successful only treating dogs. Or cheetahs. You can also be successful in the financial markets just by trading Long Calls or Long Puts.
Video of the Day
What Is Option Pricing
Option pricing refers to the amount of the option premium per share at which an option contract is traded in the live market.
Today’s Lineup
TALES OF A TECHNICIAN
What Do I Do When Credit Spreads Go Awry?
Long-time readers know I’m an advocate of scaling-in when selling naked options or credit spreads. The idea is to split your position into two or three tiers and to enter them at different prices to increase the odds of success. I’ll link to a few previous articles below if you need a refresher. I received a question from Jacques that I want to respond to in today’s blog.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
Hell Yeah! I’m liking this Idea! I’m gonna put it in writting again…Tackle Trading is creating a new Element from the periodic table…it’s called Awesomite! Thx guys!
Thanks for the positive feedback, Joel!