Understanding Delta and Directional Options Trading

One very important factor that many traders ask me about is how far in the money or how far out of the money they should go when buying an option. In essence, the issue is Delta, which is the Greek term for the expected change in the option for every dollar fluctuation in the underlying stock. Delta is […]

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Bull Call Debit Spread Explained

A bull call spread is a vertical spread that relies on two calls with the different strike prices and same expiration date. The strike price of the short call is higher than the strike price of the long call, which means this strategy is a debit spread, but the short call option can be utilized to offset […]

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Risk Protection With Put Options and Stop Loss Orders

Earn $250, $500, $1000, or More……While Never Actually Owning ANY Stock or ETF!Follow Link To Learn MoreMost professional traders employ some form of downside protection to hedge their position against loss, caused by their long position turning against them and moving beyond expected trading range . The biggest issue in this situation is figuring how much downside protection should be in […]

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Introduction to Historic and Implied Volatility

Earn $250, $500, $1000, or More……While Never Actually Owning ANY Stock or ETF!Follow Link To Learn MoreWhen figuring out the true value of an option, volatility can be the most important factor that will influence the options price over it’s lifetime. At the fundamental level, volatility means movement of the underlying asset. But when it comes […]

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Are You an Options Buyer or an Options Seller?

Often times when traders first begin trading options, they have a difficult time deciding whether or not they should be buying options or selling them instead. With stocks, you are limited to buying and selling shares. But with options, you have calls, puts, combination spreads and to make things more confusing; different strike prices and expiration […]

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How To Track Volatility With VIX Index

Earn $250, $500, $1000, or More……While Never Actually Owning ANY Stock or ETF!Follow Link To Learn MoreThe VIX is calculated using a rather complex formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls. Fortunately, the calculation is performed by the CBOE exchange, so the trader doesn’t have to perform complex mathematical […]

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Choose The Right Call Option

There are many factors that go into deciding which call option to buy. One of the biggest mistakes that beginners make is focusing on the price of the call option, instead of the ultimate objective or the reason for purchasing the call option. The better way to approach this question is to determine exactly what […]

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Open Interest For Options Traders

When you examine an options chain, there will be a column that’s titled open interest, which can be a very useful tool for options traders. The open interest shows all open options contracts that are available for exercise have not been closed out. For example, if you opened or initiated a trade by purchasing 10 […]

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Relative Strength and Call Options

According to statistical analysis and based on over 20 years of trading experience, I can tell you without hesitation that very basic relative strength analysis between two related stocks or other assets is one of the best market timing methods that you will find.  I’ve said it many times before and I will say it […]

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Swing Trading Options Strategies

Earn $250, $500, $1000, or More……While Never Actually Owning ANY Stock or ETF!Follow Link To Learn MoreOver the last few months,  I’ve received several emails asking me questions about Swing Trading Options Strategies and how to apply our trading strategies to the options market. Originally, I decided against discussing options because I wanted to focus extensively on […]

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