Tag: trade
Top Five Reasons To Be An Options Trader
NUMBER 5 – ABILITY TO TRADE BOTH SIDES OF THE MARKET You can trade the market up and trade the market down. Most traders who buy stock don’t know how to trade the market to the downside. With Options, it is easy. You just buy a put option, and with the power of leverage, you can get into […]
Is There Still Time To Be Bullish On Bonds?
As low as interest rates have been lately, it doesn’t seem to have diminished investors’ appetite for government bonds. A yield under 1.50% for 10-year Treasury notes is not a detriment, apparently, when the rest of the developed world is also in an ultra-low rate cycle. Bond investors may have assumed the looming threat of […]
Three Of The Most Shorted Stocks Today Paying Dividends
Short selling is a trading strategy to bet that a stock price will fall. However, if many traders all short the same stock and the trade turns against them, they can get caught in a money-losing short squeeze. For high-yield stocks, selling short is often a bet on a dividend cut. When that doesn’t happen, […]
The Pros And Cons Of Buying Weekly Options
One of the aspects I love about running the Options360 service is the member interactions I receive through live webinars and their ability to email me directly. Members have the ability to ask me about specific positions and strategies, or general concepts. A recent question came from Agnes, who asked what the pros and cons of weekly […]
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 […]
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’ […]
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 […]
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) […]
The Complex Truth About Trading In A Bull Market
We’re back in a bull market, with many of the major indices tipping all-time highs. We all know that during such periods, everyone can look smart. But, after last fall’s swoon, many are treading carefully wondering if it is safe to join the party, or does prudence take precedence and suggest it’s time to take […]
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, […]
