Beginners Guide To Vertical Options Spreads

Vertical options spreads are very powerful trading tools if used correctly. There’s a total of four different vertical spreads and each one has it’s own unique purpose. The four different spreads can be divided into two different categories, debit spreads and credit spreads. It’s very simple to differentiate between the two because of their names. With vertical credit […]

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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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