Tag: Trading Options
The Top Three Options Trading Errors To Avoid
At some point, everyone makes mistakes when trading options—even the pros. However, as long as you’re aware of them, you’re less likely to repeat the same mistake over and over again, ad nauseum. Error No. 1: Not Having a plan One of the worst things any trader can do is trade without a plan. Without a […]
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 […]
Buying A Put Option On Box $BOX
Buying A Put Option On Box $BOX There are typically ample opportunities to find attractive call option to buy on a weekly basis. It’s fairly common to find stocks that have been oversold in the short-term. There are plenty of reasons for overselling to take place. On the other hand, overbought stocks are harder to […]
Did You Make 175% Trading BP?
A few weeks ago, I was sitting at my desk watching the stock ticker on CNBC. I’ve spent way too much time over the years watching stock symbols and prices scroll across the screen. But here I was again, doing the same thing I’ve done for most of my adult life. Except this time, I […]
How To Cash In On Oil Using Options
There’s a great opportunity in oil right now, but you may not realize it. With the media focusing on the BP oil spill and the scary economic conditions, it might not be obvious. Oil prices are undervalued and there’s money to be made off of the market’s mispricing. Take a look at the PowerShares DB […]
The Secret To Trading The VIX
Everyone thinks professional traders have these great secrets to trading – silver bullets guaranteeing profits. It turns out there’s really nothing secret about being a good trader. Discipline, timing, research – these are things anyone can do with time and effort. But there’s at least one exception to the rule, the VIX. Professional traders don’t […]