Option Selling

Covered Calls: How and Where do you Start?

Covered Call Option Strategy Where do you start when you want to start trading stocks and covered calls? That is the topic in this video. In it I go over how to get started, how to calculate how much money you need to get started, what you can make, and some simple guidelines I wish…

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Option Investing: How To Invest For Retirement

Option Investing for Retirement Here is a pretty good video of a segment done by Jim Cramer in which he talks about what to invest in inside your retirement accounts. If you are into buying and selling options, now it is possible to sell options inside your IRA and many people do. I do not…

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Showing A Loss Before Expiration

Credit Spread is Showing a Loss “The credit spread is showing a loss”. Why is this trade showing a loss? That is the question a member asked me today. His question has to do with why a credit spread is showing a loss when the stock is still above the short strike.  Valid question, and…

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How Options Work: How Do Options Expire?

How Options Work Q:  Dear Allen, I am pretty new to the option trading and that’s why have to ask this very basic question. You are sometimes coming with a recommendation  “Will have to hold to expiration”. I would like to get better understanding of the processes that happen at the expiration day.  Could you…

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Auto Trading Options: New Partners Added!

Auto trading options: OptionGenius is pleased to announce that we have added two more brokers to our auto trading options program. Trademonster and Interactive Brokers. Trademonster is a newer options broker but is focused on customer service and growing their customer base by providing lots of trading tools, resources, and education. Interactive Brokers is a larger…

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Weekly Options Credit Spread Horror Story

Option Credit spreads are a very simple trade. You sell one option, buy another for protection and hope that your sold option is not in the money on expiration day. In other words you sell the 100 put and hope the stock stays above 100. Or sell the 150 Call and hope the stock stays…

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Credit Suisse Suggests a Butterfly Option Trade

Butterfly Option Trade: The following is from a Barrons article by STEVEN M. SEARS Butterfly Option Trade on Sprint IF THE FEDERAL RESERVE can print money, so can you. All you need is a little cash, and a ton of nerve. Consider Sprint Nextel (ticker: S). The $4 stock is a dog; it has declined…

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Stock Options Trading From Goldman Sachs

The following is from a Barrons article by STEVEN M. SEARS A STRADDLE FOR GE SHARES OF GENERAL ELECTRIC (ticker: GE) have been a disappointment for much of the 21st century. The stock has lost half of its value in the past five years, and it’s gone nowhere in the past three months. But there…

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Index Trading and Investing VS ETFs

Index options trading Index trading: I often get asked by members which are better to trade, Indexes or ETFs. “Should I trade SPY or SPX, IWM or RUT, QQQQ or MNX?” The answer is, it depends. But I do have my preferences. Liquidity Both ETFs and Indexes are very liquid.  As I write this the At…

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