Tag: option traders

Why Smart Investors Use Covered Calls To Profit

| February 10, 2020 | 1 Comment
Why Smart Investors Use Covered Calls To Profit

Recent market volatility has both put traders on edge and pumped up the volatility in options. Those two usually go hand in hand and they create a great opportunity for longer term investors with a cooler demeanor to capitalize on the current dislocation. One of the best, and most popular approaches, especially among investors that […]

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1 Predictable Pricing Behavior That Savvy Options Traders Use

| January 11, 2019 | 0 Comments
1 Predictable Pricing Behavior That Savvy Options Traders Use

Earnings season officially kicks off next week with some of the big banks such as  JP Morgan (JPM)  and Bank America (BAC)  set to report on Tuesday and the first of FAANG, Netflix (NFLX) reports on Thursday. Earnings can be very tricky to trade as there are many moving and unknown parts; will the company miss or beat expectations, what will be the […]

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Options Trading: How To Handle Earnings Reports

| April 13, 2018 | 0 Comments
Options Trading: How To Handle Earnings Reports

Earnings season officially kicks off with some of the big banks such as  JP Morgan (JPM)  and Citi set to report this coming Friday morning. This is an important, yet difficult time for options trading. Earnings can be very tricky to trade as there are many moving and unknown parts; will the company miss or […]

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Options Trading: Do Diagonals Beat Covered Calls?

| February 2, 2018 | 0 Comments
Options Trading: Do Diagonals Beat Covered Calls?

The covered call strategy is one the most popular options trading strategies, especially among investors that don’t consider themselves option traders. It’s a way for owners, especially for buy and hold types, to generate income from the stocks they own while also providing a bit of a hedge for their portfolio. But for those that might […]

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How To Make $5,094 A Month Without Buying Stocks

| July 19, 2017 | 0 Comments
How To Make $5,094 A Month Without Buying Stocks

Today I’m going to show you a proven way to collect $5,094 in cash, on average, every month—without buying a single stock, bond or fund. In fact, you won’t have to buy anything at all. (I’ll show you precisely how this works in a moment.) That amounts to a nice $61,000-a-year income stream, easily enough for you […]

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How To “Write” Covered Calls For Safe 8% Yields

| February 24, 2017 | 0 Comments
How To “Write” Covered Calls For Safe 8% Yields

Most investors buy stocks and hope they’ll go up in price. They do nothing in the interim to generate cash flow from those stocks while they sit in their portfolio – like writing covered calls. “Write” what? I’ll explain. And I’ll also highlight some popular exchange-traded funds (ETFs) and closed-end funds (CEFs) that will help […]

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Don’t Fall Prey To Overpriced Options

| February 17, 2017 | 0 Comments
Don’t Fall Prey To Overpriced Options

I am old enough that I was trading in the markets before decimalization. If an option was trading for a quarter, we called it a “quack.” If it was trading for a sixteenth, we called it a “teeny” or a “stink.” Beware the teeny puts. If you were a market maker on the floor, you […]

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