When I first started dipping my toes in the trading world, the first thought that came to mind when I heard the word call spreads, was something I put on food. What is a call spread? Fortunately or unfortunately the word “spread” in the trading arena has nothing to do with culinary delights. Having said…
Category: Options Trading
Are you looking for good recommendations for an options trading alert service, with real options trading professionals, that have a consistent track record and a good reputation? The best services offer real-time alerts with entries and exits. They also keep it simple, while also offering tutorials to help new traders get started. I’ve seen many…
IV crush is the phenomenon whereby the extrinsic value of an options contract makes a sharp decline following the occurrence of significant corporate events such as earnings. Unfortunately, this implied volatility crush catches many options trading beginners off guard. Buyers of stock options before earnings release is the most common way options trading beginners are…
Are you at risk for stock assignment with options? That’s a question new options traders focus on. The thought of being assigned sounds scary, but it’s not. While rare, it’s important to be aware of how the assignment process works. You have no control on when options assignment takes place. If you don’t have the…
Can you get rich trading options? The short answer is yes. However, options are more involved than stocks. As a result, you have to put in time to develop a winning strategy. Once you do, you can make a lot of money trading options. Options trading is a great way to grow a small account…
Do you know what are the best stocks for options trading? Options are a great way to to grow your account. And knowing which ones are better, and why is extremely helpful. However, options have more moving parts than stocks. As a result, they’re trickier to learn. Moreover, if you’re willing to put in the…
How much money can you make trading options? That depends on your account size and trading strategy. On naked calls and puts you could make 20%-50% or more per trade. On credit spreads traders look to take profits around 50% and debit spreads anywhere from 10-$50% or more. You need at least $5,000 in an…
Do you know what an intrinsic value calculator is? Let alone how to use one? Intrinsic value refers to the in the money portion of an options contract. The calculator is a nifty tool you can use to learn to true value of a stock. Intrinsic value refers to an investor’s perception of the inherent value of…
What are the options basics? 1. 1 contract is the equivalent of 100 shares of the stock. 2. Buy a call when you believe price is going up and a put when price is going down. 3. All options contracts have expiration dates. 4 Strike prices: in the money, out of the money, at the…
Looking for how to sell put options? 1. Log into brokerage account. 2. Go to an options chain. 3. Look to right of options chain at a put chart. Find which strike price that you want and click sell. 4. Confirm order entry box window details and send the order. 5. Selling naked put options…
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