Tag: Options
New Traders Must Read This…
It happened again. And it pains me every time I see one of these… I received an email from David H. who’s mad as hell. You see, he “sunk his life savings into” a single option trade. The trade didn’t work out as planned. Now he’s wiped out. Don’t let this happen to you. I’ll […]
84% Of Investors Are Doing It… Are You?
I just heard an amazing statistic. According to one major brokerage firm (who will remain nameless), 84% of their active traders are using a simple strategy to make money in the markets. It’s a strategy that works best when markets are trading flat or slightly up. The strategy isn’t complex… and today I’m going to […]
Option Hedging Strategy
Early in my banking career I spent a good deal of time on the phone. No, I wasn’t talking to friends or flirting with girls. I spent hours on the phone developing contacts at institutional investment firms. You’d be surprised how difficult it is to talk with a money manager running billions of dollars. I […]
Credit Spread Option Trade Produces Quick Profit
Are you an experienced trader? Ever trade options? I’m sure some of you’ve never traded an option in your life. I actually started trading options in high school. I only did this because I didn’t have enough money to buy stocks. When I started with options trading, brokerage firms had just started allowing touch-tone telephone […]
How To Use A Debit Spread Option Strategy
I can’t pass up a good deal. As a matter of fact, I buy the Sunday paper every week for the coupons. I’m not afraid to admit it. I seem to have a nose for a good deal. I can find bargains anywhere, its just as easy in Brooks Brothers as it is the Safeway […]
How Options Triple Witching Can Affect Stock Prices
Just the other day I received a phone call. It was from a good friend of mine who was thinking about making a trade in his retirement account. The idea was really interesting. He’d done his research. He talked about the macro-economic view which started him thinking. Then he talked about his industry research. As […]
Call Bull Spread On Potash
I love earnings season. It’s a great time to capitalize on the craziness of the market. It also gives us an opportunity to profit by smartly trading options. If you remember back in October I pointed out a trade. One of the solar companies was going to announce their earnings. Most of their competitors had […]
Profits In Currency Options Better Than Stocks
Have you looked at the S&P 500 lately? The S&P 500 is an index of the top 500 companies in the stock market. It’s supposed to measure how well the market is performing. Yesterday it closed at 1,334. This is a stunning number. You see, the S&P 500 first reached the 1,334 level in May […]
Trading Options Around Earnings Reports
A few years back I was hunting in Montana with a good group of guys. Honestly, I’m not much of a hunter. But I enjoy being outdoors in very beautiful places. I also like the camaraderie one finds with a group of men all on a common mission. What I remember most were the stories […]
Large Funds’ End Of Quarter Trading Impacts Market
I just got off the phone with Southwest Airlines. Booking a flight to San Francisco was a breeze. I’m flying out to the bay area in April for a wedding. A good friend, Babe (yes that’s his real name) is settling down, tying the knot and marrying the girl of his dreams. While sorting out […]
