Written By John Lindahl The past articles have discussed Credit trades where we opened a trade with a net credit. Specifically. We discussed Bull Puts, Bear Calls, and their combination into an Iron Condor. This article will discuss a Bull Call which is opened with a net debit. Bull calls are used when your [...]
Written By John Lindahl In our last article, we discussed the four types of Vertical Spread trades. Today we are discussing the combination of the two credit trades, a bull put and a bear call, which when combined formulate an Iron Condor. Iron Condor trades are used when the outlook of an equity [...]
Written By John Lindahl Options trading strategies provide significant advantages for traders by reducing risk, lowering cost, providing flexibility to meet changing market trends, and enhancing profitability. One such strategy is the use of “Spreads”. What is a Spread Spreads are trading strategies that combine the simultaneous buying and selling of options contracts typically [...]
Written by: John LinDahl What are these things called “options”? What is the mystique about them and are they as risky as people say? There are lots of myths about options and how they are supposed to be dangerous. While every investment contains risk, if used correctly, options can reduce risk and increase profits. [...]
Written by: John LinDahl There are many myths about options being risky. While risk is inherent in any investment, options, when used correctly, can mitigate risk, and increase profit. Have you ever bought a stock because you thought it was going to go up, but instead it went up a little, down a little, [...]
Much of the conversation of options trading is in regards to buying contracts - but maybe you want to take the wheel yourself and learn how to sell stock options. If so, you’ve come o the right place. In this article, we’re going to guide you through the process of creating and selling your own [...]
Do you have an open position in a stock and want to hedge against any possible downside? Are you looking for a way to capitalize on your theory that a stock is going to drop in value? If so, you have come to the right place. Today, we’re going to teach you how to short [...]
Are you wondering when to sell stock options contracts back on the market as opposed to exercising the option and buying/selling the underlying stock in question? You’ve come to the right place. Maybe your contract is in the money right now - or looks as if it’s headed in that direction. But, you don’t have [...]
There are a few components of an options contract - the strike price, the underlying stock in question, the quantity, and of course, whether the contract is a call or put. But today, we’re going to talk about the expiration date. More specifically, when do stock options expire? Not just the date - but what [...]
When you purchase options contracts, you’re making an educated guess on how you expect the underlying stock in question to perform in the future. Maybe you’ve purchased a call option and are hoping the stock in question rises in price so that you can then purchase it at a discount. On the other hand, perhaps [...]
