Category: Options Trading

best stocks for credit spreads

​The best stocks for credit spreads are the stocks that have the best potential moves. They are reputable large cap companies which have high open interest over 1000, lots of intraday volume and a tight bid/ask spread. Look for stocks that offer weekly traded contracts as well, since these options contracts are highly liquid. What…

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long call

Do you know what a long call is in options trading? Long calls are the same as buying a naked call option, just a different name. You go long or purchase a call when you believe that the price of the stock is going up. One options contract is the equivalent of 100 shares of…

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Options

What are stock options basics? Lets spell it out for you. 1. Options contracts are the equivalent of 100 shares of a stock. 2. All options have an expiration date. 3. There are options buyers and also sellers. 4. Calls are a bullish strategy. Puts are bearish. 5. There are in the money, out of…

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how to buy put options

Do you know how to buy put options? The process is simple. Go to an options chain. Typically puts are on the right side of an options chain and calls are on the left. Go to the “ASK” and click buy. You have the option to enter a limit order or market order. We recommend…

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how to buy call options

Do you know how to buy call options? The process is simple. Go to an options chain. Typically calls are on the left side of an options chain and puts are on the right. Go to the “ASK” and click buy. You have the option to enter a limit order or market order. We recommend…

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sell a put

When you sell a put you might be bullish. Weird right? All you every here is people buying puts long, and selling them (to close the trade) when the stock moves down. But this is different. This is a strategy that options traders use to collect premium (aka money!). You are selling the put to…

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sell a call

When you sell a call option, you’re bearish. You sell the call short, and want it to drop in value. You keep the premium (money). It is the opposite strategy of buying a long put, where you still want the price to drop. However, when you sell a call, if the stock moves sideways, or…

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