Option Strategies

2 Butterfly Option Trades

Butterfly Option Spread Trading This is a video of myself looking for some option trades using one of my real money accounts. These trades are for example only and I may exit or change them at any time without telling anyone. This is a sample of the types of videos that are produced for Option…

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Iron Condors Trading Lesson 3: Risk Management

Iron Condor Options This is Lesson 3 in our 5 Part video series on Iron Condor Options Trading Iron condors are highly profitable A few very profitable option traders exclusively use this type of option trading strategy. Although iron condors may take some time to learn, but they are a great way to make consistent…

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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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Iron Condor Math and Calculations

Iron Condor Trading Video Interested in learning about the iron condor? When you are just getting started in learning options trading the way the prices and credits are calculated can be a bit confusing. Order entry is another confusing topic that costs a lot of new traders a lot of money. In this video I…

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Why Trade a Butterfly Option Over A Calendar Spread Option?

Calendar Spread Option VS Butterfly Spread Option? Many readers liked the MCD butterfly option I posted on Friday. Here’s the link if you missed it: http://optiongenius.com/blog/mcd-butterfly/ Calendar Spread Strategy One reader posted an excellent comment that I decided to create a new post about. Here is what he asked: As of Friday’s close, the 75…

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Out of the Money Call vs At The Money Call

Is the out of the money call better? Got a question from a member recently: I have been looking at stocks, and 1 expert says UNP has the highest value in the s&p 500.  It appears to be doing well. Please look at the calls with me. The jan 2012 leap, at 60. I believe…

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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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Option Butterfly Spread Being Used As A Hedge

Option Butterfly Spread: A friend emailed me the following. It was taken from an email commentary sent out by OptionsXpress.com “The biggest options trade in the market so far Wednesday (1-12-11) is a block of 80,000 February 121 puts on the SPDR 500 Trust (SPY). The so-called “Spyders” is an exchange-traded fund that holds all…

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Unbalanced Condor Option Spread

  by Edward Laporte Question: How can you profit from a potentially strong bull move while protecting yourself from a second bear wave? Answer: A ratio (unbalanced condor) Can anyone think of a good reason to throw caution to the wind and go long equities? Listening to the “experts” can leave you feeling fear and…

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