New Option Trader

Yes, I know, I’ve been absent.. Sorry about that.  Had a few things going on such as getting laid off (Yes, it’s a good thing, wanted to leave anyway), and the Options University Live Mastery classes started (very consuming, very intense). So, anyway, this market has really been a shift for me because as long [...]

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. [...]

A collar provides maximum downside protection at a reasonable price because the premium received from the sale of the call will partially offset the cost of the purchase of the put. – Options University

A few things to remember when doing Bull Spreads. This helped me a lot in keeping straight what this type of trade is doing and why… The leg to focus on is the position with the more valuable leg. The short position is in effect a hedge!  Having this hedge reduces the cost and risk [...]

I am a devoted Think or Swim chat attendee.  It’s one of the things I love about this broker. Dan Sheridan is a guest speaker today and the topic is, “Spread Criteria for Complex Option Trades and Position Management” Will post notes during the chat.. Won’t be comprehensive just anything that really stands out. If [...]

I’ve been focusing on mastering spreads for a while now because every other strategy is either a combination of spreads a just another type of spread. So, really understanding how spreads work and why is key to understanding all the other strategies. Now, I know that there are bullish spreads and bearish spreads, and that [...]