New Option Trader

It can be tempting in a bull market to let it all ride on a single trade.  This may work out once of twice but eventually you will end up giving it all back.  Especially with the volatility swings we’ve been seeing lately, what looks like a no-brainer high probability trade can very easily turn [...]

Parity: Parity is the term that refers to an option whose price consists strictly of intrinsic value. In essence, parity is the amount by which an option is in-the-money.

Taking classes on options trading and reading books on option trading are both definitely the best way to learn at an in depth level.  But, that can get expensive and it does take a while to really feel comfortable with what you’re learning.  So, I recommend supplementing these paid educational classes with the multitude of [...]

Support and Resistance are basic concepts everyone should understand. But, I remember back when I first was introduced to support and resistance I had a lot of questions and was unsure where I was seeing support and where resistance. Last night I was roaming around You Tube and and found a bunch of great videos [...]

I can hear it now.. naked puts are risky and dangerous — never use naked puts! Ever! That’s what we’re told when we’re first learning how to trade options, right? I know I’ve heard it more than once. Well, there is a place for naked puts and it’s a good place — in an IRA. [...]