Tag: trading
Fundamental vs. Technical Analysis – What’s Your Style?
In investing and trading, we often hear debates on the merits of fundamental vs. technical analysis. Both aim to improve our probability of a profit. Both methods have their usefulness when correctly applied. They are not the same by any stretch, so it’s not a debate over one “apple” vs. another. It’s a comparison of […]
Which Is Better: Covered Calls Or Cash-Secured Puts?
Covered Calls and Cash-Secured puts seem to be the most popular choices among traders in finance and stocks. And for a good reason. The two trades in the same market, just on different terms. That’s right. And it all started with the same idea… Both kinds of trading are pretty much the same, except for […]
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 […]
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 […]
Are The US Markets Sending A Warning Sign?
After an incredible rally phase that initiated just one day before the US elections in November 2020, we’ve seen certain sectors rally extensively. Are the markets starting to warn us that this rally phase may be stalling? We noticed very early that some of the strongest sectors appear to be moderately weaker on the first […]
Five Key Indicators For Landing Top Profits
I make stock and options recommendations based on what the charts—not the talking heads and suit-and-ties on financial TV networks—tell me. I spend many hours every week analyzing stock charts, support and resistance levels, moving averages, and numerous other technical indicators of the major indices and stocks to ensure that I’m bringing you recommendations that […]
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 […]
Options Trading: Understanding Put-Call Parity
If I had a nickel for every time someone told me they love covered calls for their conservative income generation, but would never sell a naked put because that’s too risky, I could retire from trading. The fact is a covered call is exactly the same, in terms of both risk and reward, of selling 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’ […]
