Options Education
How Does Time Decay Work?
Time Decay, which is also known as Theta is an option seller’s best friend. It is the amount of money a seller makes per day on an option. Option time decay is denoted by using the Greek word Theta. Theta is one of six indicators in option trading known as the Greeks. Options are a…
Read MoreOption Strategies to Limit Losses
Every once in a while I get an email from a prospective member who asks me why I lost money in September 2008. I did have a large loss compared to my prior losses and they want an explanation. Just like this email from Mike: First of all, thank you for your free e-mail…
Read More10 Ways To Make More Money With Covered Calls
Just did a training yesterday on covered calls. We did not go into the details of exactly how to do the trade. If you don’t know what a covered call is check this out. But instead we covered things like how to choose the proper stocks, how to choose the best time to expiration, how…
Read MoreGlimpse of Genius Trade for January 2014 – FDX
So far the Glimpse of Genius trades are doing very well. Last month’s trade expired worthless for the full profit. This one is using the same strategy as last month – the credit spread. The trade is on FDX which is Fedex. There are 30 days to expiration. The Trade: Sell Feb 135 Puts Buy…
Read More(Stock Option Analysis) Is This A Good Trade?
Online Option Trade Analysis Got an email question today about a potential trade. Actually the email says he already made the trade. Let’s take a look and see if it makes sense. Email: “I’m looking at one of the companies Xpound has covered: AKS. http://finance.yahoo.com/q/op?s=AKS&m=2013-07-20 If I bought 100 shares of this company at $3.35…
Read MoreHistory and Use of Weekly Options Trading
Weekly Options Trading, or commonly called “Weeklies”, are options that trade for about one week. New Weeklies are listed each Thursday or Friday and expire the following Thursday or Friday except the third week of the month because that is when the regular monthly options have only one week left to expiration. Except for the…
Read MoreButterfly Option Strategy Basics
The Butterfly Spread Not sure how a butterfly works or makes money? No problem. This video is in response to a question from a member. He wanted to know how the trade made money and why he had to exit the trade to get his profit. The answer to the second part of the question…
Read MoreStock Option Strategies – 4 Strategies You Can Trade
What is option trading? New to option trading? Not sure what the difference is between a butterfly, a condor, or a mouse? (Hint: there is no strategy called “mouse”) In this video I open up one of my personal trading accounts to show you 4 trades that are all of a different strategy. We have…
Read MoreButterfly Spread Option Trade Update
Butterfly spread option trading strategy Here is the third installment of the JNJ and MCD butterflies. Here is how they are both doing after adjustments. Got any questions about the video? Go ahead and leave your notes in the comments section below. Also, if you’re new to options trading and are looking for the options…
Read MoreWeekly Options Trade Setup
Awesome Weekly Options Strategies So you want to trade weekly options? Never mind that they are most risky than monthly options. But the quick money and high returns are sometimes too hard to resist. Ok then, here is a trade setup I use. When these conditions are met I trade credit spreads. More details are…
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