A Warning About Selling Naked Puts
With another wave of earnings right around the corner, I feel the need to caution option traders and investors about selling “naked” or cash-secured puts over an earnings announcement. Whether you refer to it as writing or selling naked options, many option traders do not understand the risk. Selling a put option without having a […]
Hard vs. Mental Stops for Option Traders
When to choose hard vs. mental stops as an options trader is a topic that comes up frequently in my daily group coaching classes and one-on-one coaching sessions. The truth is, it is not an easy answer. When it comes to options, stop losses can be a little tricky as compared with an investor who […]
Option Vega Works Both Ways
If you have traded over the past several weeks, you have undoubtedly noticed how volatile the market has been. As an option trader, you are or probably should be familiar with how implied volatility changes can affect option prices. Below we will take a look at a topic I covered in class a couple of […]
Bullish Bases – What Do You Need to Know?
Technical analysis can be a big part of your potential success even as an option trader. I truly believe this and talk about technical analysis every single day in my Group Coaching class. A lot of my education focuses on support and resistance. Often a stock needs to move above resistance (if there is any) […]
Outright Call Options and Put Options – All You Need to Know
A topic that is brought up more often than you might think in my Group Coaching class is buying outright call options and put options. When option traders first learn about trading options, they often only consider buying call options for a bullish outlook and put options for a bearish outlook. I know I did […]
These Work-From-Home Stocks Will Continue to Climb Even After COVID
One of the big stock market stories of 2020 was the domination of so-called Work-From-Home Stocks. While some companies lost massive share value last year, these work-from-home stocks skyrocketed. But what happens after COVID? Can some of these stocks continue to climb? I think they can. To understand why, let’s take a trip through innovation […]
Trading Options and Cash-Secured Puts Over Earnings
With the next round of quarterly earnings just about to start, it is a good time to take a look at trading options and in particular cash-secured puts. Option prices (implied volatility levels) tend to increase around an expected earnings report. This could be potentially good (if traded correctly) for premium sellers and not so […]
Bull Call Spreads and Bull Put Spreads Explained
Option traders often ask me is there a way that you can take advantage of this bullish investing scenario while limiting risk? Certainly, there are a few option strategies that can accomplish this goal. One that may be an option (no pun intended) is a debit call spread, which is sometimes referred to as a […]
