Top 5 Option Trading Myths “Demystified”
Many traders have doubts about options trading and most of these doubts usually arise out of fear because either options are a foreign concept or you have heard troublesome stories. However, the truth is that options offer numerous benefits and carry about the same risk as stocks, so there is no reason to...
Recent Posts
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A Mahendra on
Jan 10th, 2010
Posted by
A Mahendra on
Jan 5th, 2010
Posted by
A Mahendra on
Dec 5th, 2009
Jan 2010 Pullback...
Posted by A Mahendra on Jan 25th, 2010
Last week (Jan 19th to 22th) we saw a pullback in all three major indexes associated with the uncertainty surrounding regulation for the banking industry and whether Fed Chairman would be confirmed for a second term. Over a period of 4 days, the DOW dropped almost...
Bear Call Spread (Short Call S...
A BEAR CALL SPREAD (short call spread) is a fundamental bearish spread in options trading, composed of two call options with different strike prices that expire in the same month, where a HIGHER call strike is purchased and a LOWER call strike is sold, simultaneously....
Bull Call Spread (Long Call Sp...
A bull call spread is a fundamental bullish spread in options trading, composed of two call options with different strike prices that expire in the same month, where a “LOWER” call strike is purchased and a “HIGHER” call strike is sold,...
Introduction to Option Vertica...
In the basic strategies section, we covered the 4 basic option trading techniques and amongst the four were two strategies (short call and short put) that had unlimited risk exposure. In addition, you may have also realized that buying call or put options can get...
Options 101
Options Greeks Explained: Theta
Given that options are a contract that expires at one point or another, the option greek “theta” provides a measure of time decay or the change in an options value with each passing day. Remember that at expiration, options only contain “real” value as the “time” value...
Given that options are a contract that expires at one point or another, the option greek “theta” provides a measure of time decay or the change in an options value with each passing day. Remember that at expiration, options only contain “real” value as the “time” value...
Basic Strategies
Top Reasons Why Beginners Lose Money
Trading options is not easy…… It takes time to learn the various techniques and get a feel for how options work, but its not any different than trading stocks and to be successful you have to put in the time. I am going to cover the TOP 5 Reasons why beginners fail to make money or lose money...
Trading options is not easy…… It takes time to learn the various techniques and get a feel for how options work, but its not any different than trading stocks and to be successful you have to put in the time. I am going to cover the TOP 5 Reasons why beginners fail to make money or lose money...
Advanced Strategies
Bear Call Spread (Short Call Spread)
A BEAR CALL SPREAD (short call spread) is a fundamental bearish spread in options trading, composed of two call options with different strike prices that expire in the same month, where a HIGHER call strike is purchased and a LOWER call strike is sold, simultaneously. By combining a long call option...
A BEAR CALL SPREAD (short call spread) is a fundamental bearish spread in options trading, composed of two call options with different strike prices that expire in the same month, where a HIGHER call strike is purchased and a LOWER call strike is sold, simultaneously. By combining a long call option...
Market Thoughts
Jan 2010 Pullback
Last week (Jan 19th to 22th) we saw a pullback in all three major indexes associated with the uncertainty surrounding regulation for the banking industry and whether Fed Chairman would be confirmed for a second term. Over a period of 4 days, the DOW dropped almost 500 points since it peaked on 19th Jan,...