The best stocks for options trading all depends on your strategy. Large cap stocks such as $AAPL, $FB, $NFLX, and $AMD are highly liquid stocks to trade. You could wait for pullbacks and trade them bullish with naked calls, call debit spreads, or put spread spreads. Or, you could let them get overextended and short…
Category: Options Trading
Credit spreads allow traders to profit in a neutral market or slight directional bias. This strategy requires a margin account as well as a trading account with a larger amount of money. It might limit the amount of trades that you can make if you have an account less than $5,000. This is an options…
Options trading education allows you to learn the most effective way to trade options. What is an option? An options contract gives you the right but not the obligation to buy or sell a stock at a set price within a certain time. The right to buy is the call option. The right to sell…
Need options trading explained? Let’s start off by defining what options are. Options give you the right but not the obligation to buy or sell an asset at a specific price. Options have a reputation for being hard to understand. They’re great for trading for profit, speculation and hedging when they’re used properly. The versatility…
Finding the best options to trade can be one of the most challenging aspects of options trading. There are so many stock to chose from. Look for contracts with a high open interest over 1,000 and very tight big/ask spread. Liquidity and trading large well known stocks like $AAPL, $FB, $AMD, and $NFLX will be…
Swing trading options is a great trading technique for beginners and advanced traders alike. Some of the most common ways to swing trade options are naked calls and puts, credit spreads, and debit spreads. Traders look to buy a weekly contract for shorter term swings and monthly expirations when trading a few weeks to a…
Trading weekly options for a living is a popular strategy amongst traders. The process involves purchasing at the money or in the money contracts on large cap companies. Typically, traders buy contracts with 1-2 weeks until expiration and they are trading short term movement or pops within a stock. Many of times, traders will trade…
Options vega is a part of the Greeks in options trading. Vega measures the rate of change in implied volatility for an options contract. It’s a lot like how delta measures change in an options price. Sometimes reversal rallies bring a large decline in implied volatility. So while you have a positive delta, the loss…
Options theta is one of the option greeks. Theta measures the sensitivity of the decline in extrinsic value with the passage of time. It is also known as time decay. This is why buying naked options contracts is a risky trading strategy. Especially avoid buying out of the money options contracts. They are cheaper, yes,…
Options gamma is a part of the greeks and it measures the rate of change of delta. Delta tells you the amount of change in an options contract per $1 move. Delta moves up and down whereas gamma stays constant. A higher gamma means the stock is much more volatile which can actually be a good thing….
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