Category Archives for Options Education
Target Big Gains From Naked Put Strategies
I frequently speak with traders about various options strategies. Out of all the strategies, the one that gets the strongest negative response is selling naked put options. There’s some type of a connection in many traders minds between naked puts and market corrections that’s very difficult to push aside, because naked put options theoretically, have unlimited […]
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Trading The Long Strangle Spread
One option spread strategy that’s often overlooked by traders is the long strangle. This spread involves the purchase of a call and a put that are both out of the money; on the same underlying stock or ETF and the same expiration date. The long strangle has unlimited profit potential, while the risk is limited to […]
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How To Decide Between The Bull Call Spread And Bull Put Spread?
One of the most interesting and challenging parts of options spreads, is the ability to put together positions that utilize completely different options to achieve the same or similar objective. One excellent example is the vertical bull call spread, which is a debit spread, and the vertical bull put spread, which is a credit spread; both spreads profit […]
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Should You Trade SPY ETF Or SPX Broad Based Index Options?
One of my favorite options trading strategies is collecting premium on the U.S. stock market and one of the most frequently asked questions that I get from my readers is whether I prefer to trade SPY Options or SPX options? Unfortunately, there’s no simple answer to this question and instead of giving you my biased […]
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