Have you tried trading option based credit spreads? Trading credit spreads with a mythical twist. Credit spreads are a relatively low risk way to trade volatility with any account size. Your risk is limited but so is your reward. The objective is to risk as little as possible. How to Trade Option Based Credit Spreads…
Tag: options trading
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…
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…
Do you know what a long put is in options trading? Long puts are the same as buying a naked put option, just a different name. You go long or purchase a put when you believe that the price of the stock is going down. One options contract is the equivalent of 100 shares of…
The best stocks for weekly credit spreads are on large cap companies that are highly liquid. Look for options contracts that have at least 1000 or more open interest and high daily volume. A tight bid/ask spread is important for entries and exits. Look for strikes prices near at the money to trade. How to…
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…
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…
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