Evolve in Your Trading
“The more I see, the less I know, the more I like to let it go.” That’s a quote from a song written by my fellow Midwesterner Anthony Kiedis of the Red Hot Chili Peppers. Clearly he was referring to option traders. Starting Option Trader 1-on-1 Coaching When I first started working with option traders […]
How to Play Follow the Leader
Trading Rumors
How to trade the holiday markets
How I measure liquidity to get better fills
Straddle Option and Strangle Option Strategy Explained
An option strangle or straddle is an option strategy that option traders can use when they think there is an imminent move in the underlying but the direction is uncertain. With either of these strategies, the trader is betting on both sides of a trade by purchasing a put and a call simultaneously. An option […]
Selling Puts vs Selling Put Spreads
Are Low Priced Stocks Good for Trading Options?
How to Get Consistent Trading Results
The best traders are consistent in their results in the long run. They crank out profits over the weeks, months and years and make trading into a sustainable business. They make it work. And yes, there are many, many traders out there doing it. That’s not to say that every one of their trades is […]
Vertical Spreads – The Secret to Successful Trades
As an option trader, vertical spreads are most likely an integral part of your arsenal as a swing trader and if they are not, they should be. What makes them so worthy of your consideration is the wide variety of risk/reward and probability scenarios depending on an option trader’s outlook. Vertical spreads can be extremely […]
How to Trade RSI Divergences
Crude and USO: Why they don’t track properly
Big move in FCEL
New bitcoin ETF: Here’s what’s wrong with it
How to Use Slow Stochastics to Indicate Overbought Scenarios
The Sunk Cost Fallacy: Why You Are Holding on to Your Losers
“The stock is down 25%. But I didn’t lose money because I didn’t sell it yet.” That’s a quip from a conversation I had with a friend in a London pub a while back (her talking, not me). From there the conversation ultimately finished with an “I agree to disagree” ending. I told her she […]
Update on US Steel
This Is What Volatility Is Telling Us
Short-Term Put Option Strategies Explained
The mentality behind short-term put option strategies is probably different from the mentality behind short-term call options. Many times, option traders consider short-term put options mostly as a means of protection, whereas call options are often used only to generate additional income. That said, long and short put options can both generate additional income and […]
Define Risk Using ATR, Value and Acceleration Areas
The first task after entering a position should be to determine risk. Risk may be a physical or mental stop loss. Trading is tough enough; setting risk relieves some tension and allows the trader to concentrate on profit potential and trade management. Risk can be measured using average true ranges (ATRs) or points at which […]
Bear Put Spread – The Right Time for This Options Strategy
There are multiple strategies for an options trader with a bearish, bullish or neutral bias. If a trader has a bearish directional outlook, he can use a long put option strategy to capitalize on an underlying moving lower. But sometimes buying a put option can be riskier than the trader wants because of potential price […]
