The Collar Spread Strategy Explained

One of the most popular option strategies is a covered call strategy; it’s very simple to initiate and the only prerequisite is owning the underlying asset. If the underlying asset stays at the same level or moves higher, the options seller will profit from the trade. But in situations where the underlying asset moves lower, the […]

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Risk Protection With Put Options and Stop Loss Orders

Most 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 place given the risk and the  potential return on the trade. In my own trading, I […]

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Quick Tips To Better Options Trading

Many of the tips that I’m sharing with you today come from over 20 years of trading experience. Remember, there’s no correlation between complex concepts and profitability; and I urge all of you to follow these simple trading tips diligently. Options liquidity is generally 10% to 20% of the underlying asset and that makes it necessary […]

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How To Manage Covered Call Position

Many traders believe that receiving premium for  the covered call is the most important part in the process. But there are many things that can happen between the time the covered call position is opened and closed, and that’s what I want to discuss with you today. There are three possible scenarios that can occur […]

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