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What Percentage Of Options Expire Worthless?

| February 21, 2020 | 0 Comments
What Percentage Of Options Expire Worthless?

One of the persistent and pernicious myths regarding options is that 80% of all options expire worthless.  The number belies the fact that most options get closed well before expiration and can create some misleading belief that selling premium is the only sure way to make money trading options. We’ve all seen the marketing emails […]

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3 Mistakes To Avoid When Trading Options

| January 29, 2020 | 0 Comments
3 Mistakes To Avoid When Trading Options

As Charles Schwab (SCHW) led the charge into zero commission trading — which was quickly followed by everyone from other discount brokers such as E*Trade (ETFC) to full-service funds such as Fidelity – was rightly viewed as a boon for most traders. But one of the unintended consequences might have been that ‘no transactions fees’ […]

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The 6 Rookie Mistakes Options Traders Should Avoid

| December 20, 2019 | 0 Comments
The 6 Rookie Mistakes Options Traders Should Avoid

As most normal people are winding down the year and finishing up their holiday shopping, I thought this would be a good time to review some of the common mistakes traders make when using options. As shoppers have become increasingly savvy in finding online bargains and discounts, we see similar behavior spilling into other aspects of […]

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Understanding A Covered Call Strategy

| October 30, 2019 | 0 Comments
Understanding A Covered Call Strategy

The other day, I wrote about how people are piling into funds, then employ option premium-selling strategies, particularly covered calls or buy-writes. I figure it’s a good time to drill down into exactly what these strategies entail and highlight both the pros and cons. The covered call strategy is one of the most popular options strategies especially among investors that […]

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3 Steps For Using Options To Protect Your Portfolio

| July 3, 2019 | 0 Comments
3 Steps For Using Options To Protect Your Portfolio

With the stock market having a sizzling run to new all-time highs, investors are rightfully asking how they can protect their gains while still retaining upside exposure. This is where options trading can be extremely helpful.  The most straight forward and simplest form of hedging or limiting downside risk is buying put options. While it is essentially true […]

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An Easy Covered Call Shows How Powerful This Trade Can Be

| May 15, 2019 | 0 Comments
An Easy Covered Call Shows How Powerful This Trade Can Be

Greetings from the Las Vegas MoneyShow! This event is always one of my favorites to speak at every year. It’s a great place to meet with other options traders or traders who are looking to learn how to start using options. This year I’m presenting primarily about overwriting (selling options in conjunction with owning stocks) […]

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Using Covered Calls To Increase Your Return In Twitter

| February 13, 2019 | 0 Comments
Using Covered Calls To Increase Your Return In Twitter

I’ve just returned from the Orlando MoneyShow and was very impressed at the amount of investors and traders looking to learn more about options strategies. I had the opportunity to deliver two different presentations to the options-oriented folks. One of the topics I spent quite a lot of time on was covered calls. Of course, […]

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How To Protect Yourself Against The Next Market Crash

| December 19, 2018 | 0 Comments
How To Protect Yourself Against The Next Market Crash

The New Year is rapidly approaching, but instead of a Santa Claus Rally we’re mostly just seeing further declines in stock prices. The S&P 500 is already down about 6% in December alone – and has dropped nearly 3% for the year. That’s hardly the year most were expecting 2018 to be. Unfortunately for stock […]

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Options: 3 Approaches To A Double-Edged Sword

| September 24, 2018 | 0 Comments
Options: 3 Approaches To A Double-Edged Sword

Anyone that buys (or sells) an option contract is by definition employing leverage.  I think too many people get enamored by the notion that an option allows one to “control” or confers the rights (or obligation) to 100 shares for a fraction of the price of owning the underlying security.  The first thing to remember […]

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Options Trading: How To Read Unusual Activity

| August 20, 2018 | 0 Comments
Options Trading: How To Read Unusual Activity

Using options trading activity as an indicator for impending price moves is difficult, subjective, and unreliable. That said, it can help confirm other indicators, and increase the probability of a profitable trade. Indeed, there have been many situations in which activity in the options pits accurately predicts or presages an impending price move. There are 2 […]

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