Options Trading Strategy
Trading With The Trend Guide
Trading with the trend is a simple concept where you only take trades in the direction of the price trend direction on your time frame. If the trend goes up, you would only consider long trades. A market direction that is trending down, you’d only consider short trades. These are trading positions that should encounter […]
Tame The Time Factor: Calendar Spread Strategy, Step-By-Step
Editor’s Note: How would you like to earn money when a stock price stays relatively flat over a short period of time? If so, then you should take a look at the calendar spread strategy. When you invest in a calendar spread, you buy and sell the same type of option (either a call or a […]
The Green Triangle Cheat Code
When it comes to finding those perfect entry and exit points in trading, I’ve got a strategy I call the “green triangle.” Imagine it as the ultimate trading cheat code, where each side of the triangle needs to light up green before you make your move. The key to unlocking this? The 2-line crossover method […]
How To Short Stocks For Beginners
If you’re looking to take advantage of declining stock prices, then this strategy might just be the one for you. However, before diving into the world of short selling, you need to understand the key factors that can make or break your success. From selecting stocks with high short interest to carefully considering market sentiment and technical […]
Crude Oil Is About To Surprise A Lot Of People
Crude oil is about to surprise a lot of people… The energy trade has been one of the most consistent plays in the market over the last few months. But my analysis is quite clear on the matter: start looking for an exit now. Here’s what’s been going on in the oil markets… This post originally […]
Covered Call Writing
Unlocking Effortless Passive Income: The Secrets Of Covered Call ETFs
Would you like 100% passive income, with low minimums and high liquidity when you need it? I want to tell you about a little-known investment strategy that could seriously boost your portfolio’s earning potential: covered call ETFs. These innovative funds combine the stability of blue-chip stocks with the income-generating power of options trading. And the […]
Why I Love Trading Covered Calls
If you’ve been trading options for any time now, you no doubt have heard of covered calls. It’s a great trading strategy to generate instant cash for options traders. The trade is simple. First you buy 100 shares of stock. Second, you sell one call option and collect the premium. Simple right! Yes it’s simple, […]
Boost Your Covered Call ETF Returns
Covered call ETFs offer the combination of investment exposure to a selected index, plus high-yield income from selling call options. I am considering a tactic for this type of fund that should help boost total returns. In April, I made a presentation at the Las Vegas MoneyShow covering covered call ETFs. I discussed how they […]
Generating Cash Flow From The Energy Sector
The energy sector has been far and away the best performing sector over the last year with both oil and gas prices having been on the rise. A popular way to trade the energy sector as a whole is through the Energy Select Sector SPDR ETF (XLE). XLE has been a solid gainer for 2022, […]
The Synthetic Dividend Option To Generate Profits
Many companies regularly distribute a portion of their profits in the form of a dividend to attract investors and incentivize them to remain long-term shareholders. But most companies, ETFs, and commodities don’t pay a dividend at all. When there’s no dividend, the only opportunity for income or a profit comes from a capital gain (or […]
Options Trading Strategies
Put Options vs Short Selling: Which Is Better For You?
You’re probably aware that both put options and short selling can help you reap benefits when stock prices decline. But do you know which strategy works best for you? Put options offer a safety net by defining your potential losses, while short selling can be a high-risk, high-reward strategy. Let’s dig into these strategies, weigh the risks and rewards, and help you […]
6 Strategies For Diversified Long-Term Options Trading
Many people might be put off of options because they’re seen as too high of a risk for short-term trading. However, when you apply a diversification strategy, you can reduce the risks and set yourself up for longer-term gains. Expanding your range of options trades ensures you don’t rely solely on one strategy or instrument. Instead, […]
Get Ready To Trade These Stocks
Gold stocks are one of my favorite markets to trade. Many investors hate gold stocks because they tend to go up and down like a yo-yo. But that’s exactly what makes them so profitable for traders. Good traders don’t care if the market is going up or down… they just care that there’s movement and […]
3 Stocks To Sell Now
As impressive as last week’s 6.6% rally in the S&P 500 was, it didn’t change the structure of the entrenched downtrend. Instead, it was a garden-variety retracement returning prices directly into resistance. Those who viewed the rebound with suspicion were vindicated on Tuesday when sellers returned en mass at the declining 20-day moving average. With a new […]
Roblox Stock May Have Bottomed
For months, the deep discount in Roblox (NYSE:RBLX) has beckoned to bottom fishers. But so far, trying to nail the low has resulted in bruised egos and battered accounts. The selling has been relentless, and there have been too many failed bounces to count. RBLX stock has cratered 85% from peak to trough in the largest […]
Options Volatility Watch
One Way To Take Advantage Of The Volatility In Tech Stocks
Tech stocks have the started the new year with elevated volatility and quite a bit of selling pressure. The most popular tech index, Invesco QQQ Trust (QQQ), is down 5% for the year and has seen a handful of large percentage moves already. One strategist is looking to take advantage of the volatility by using […]
Why December Is Shaping Up To Be A Very Volatile Month
It looked like we might coast into the end of 2021 on a calm and seasonally bullish note with the major indices up some 25% for the YTD. But, a new Covid variant and stubbornly-high inflation have thrown a wrench into that outlook. I think December will be unusually volatile, which equates to unpredictable, which […]
Market Volatility: Trade Cautiously But Without Fear
Being a market prognosticator often means spewing thoughts and opinions to create content well beyond the reality of underlying activity. I should know, after working with Jim Cramer — the sound bite-creating master — making table-pounding proclamations and outrageous predictions, all the while, under the surface, acting as a rational, risk-averse portfolio manager. I give […]
Is The Low Volatility Market At An End?
2019 can be roughly divided into two market regimes. There were periods of high volatility and market choppiness, notably in June, August, and early October. Then, there were the stretches of low and falling volatility – January through May and mid-October through the end of the year. It certainly seemed like January of 2020 was […]
Options Trading
An Especially Good Rule For Options Traders
Don’t do stupid things. That’s a good rule for life in general. But, it’s an especially good rule for option traders. Like most good rules, though, we don’t really understand their importance until we break them. And when it comes to trading options, doing stupid things can be an expensive lesson. The options market was […]
My Biggest Trading Lesson
I was only 19 years old when I made my first trade. I had a gut feeling the market was going to go higher… so I invested $600 into the S&P 100. A few hours later, my money had more than doubled. I sold my position and took the $1,200 profit – a 200% gain. […]
If You’re Buying Stocks When The Market Opens, You’re Probably Missing Out On The Best Returns
Buying the right stocks is important. Buying them at the right time is just as important. Today I want to talk about using historical data to pinpoint the best times to buy and sell in the very short term. We have a lot of data at our fingertips. With it, we can learn things like […]
Why You Should Be Trading 0DTE Options
Short-term options trading has exploded over the last few years. It started with the creation of weekly options back in 2005, which are options that expire every Friday. These options are available on many individual stocks and ETFs and can provide quick returns for active traders. With the explosive growth of Weekly Options, exchanges have […]
Here’s What Makes A Good Trade
What exactly is a good trade? If you ask most people, they’d probably say that a good trade is one that makes money. Obviously, there’s a lot of truth to that. If you’re losing money trading, then things clearly aren’t going well. But it’s not always quite that simple… Here’s another truth – not all […]
Options Trading Basics
A Safety Net For Your Stocks: Meet The Protective Put
How would you like a little insurance in case one of your stocks takes a turn for the worse? If that sounds appealing, consider a protective put. At its core, a protective put is exactly what it sounds like—protection. It allows you to hang on to the potential gains from a stock you own, while […]
Tick-Tock! How Time Decay Erodes Your Options Profits
Welcome to the relentless march of time, where your options contracts age like milk, not wine. That pesky phenomenon called “time decay” ensures that as expiration creeps closer, your options lose value faster than a streaming service losing subscribers after a price hike. The brutal truth? You can predict a stock’s movement with eerie precision […]
Short Put Options Strategy Explained
Editor’s Note: If you’d like to buy a stock at a lower price than it’s currently offered on the market while getting paid to wait until it drops, you should consider a short put strategy. A short put can be confusing because you’re short an option that people naturally view as a short position anyway. Traders […]
Finding Support And Resistance Levels: Complete Guide
In the world of trading, support and resistance levels act as the market’s natural floor that can indicate where prices may tend to pause or reverse. Learning how to find support and resistance levels starts by studying past price behaviors, noting areas where prices have historically been bounced from, and by using tools like trend […]
The Many Uses Of Option Delta
In an option chain, the delta for a given option strike price can vary from -1 to +1. Call options have a positive delta for option buyers somewhere between 0 and +1. Calls increase in value when the underlying increases in value. Put options have a negative delta somewhere between 0 and -1 as Put […]
