Investors need to take responsibility to understand the products that they trade in. There are risk "disclosure documents (link above)and they...
Ironchef, I started trading options only Long back in 1982 and made money until 1988 when vols exploded after the crash and stayed bid. Then there...
I would add to JackRab's insightful comments. The next step is to think about your risk return payoff. What do you expect from the market and what...
When you start looking at deep ITM options, the liquidity dries up and the market makers will take you to the cleaners. The best way to assess...
When exercised there are fees and commissions of around 15 dollars to pay in addition to your stock purchase and option sell. The stock is taken...
Yes - High Kurtosis means fat tails. OTM options may be too cheap relative if you think fat tails will happen. Fat tails disrupt all option...
The short answer is they trade like options and below is the long detailed explanation. A trader would use them for a day and not a year if...
If you buy the stock at 30.09 and sell an option at 29 strike + 1.35 premium = 30.35. The difference is a profit of .26 cents before commission...
Tasty Trade is based on the assumption that implied volatility is overstated which is false. They actively try to pick up nickles and dimes in...
Yes - you made $1 dollar in option premium assuming strike price is ATM/Higher or what you bought the 100 shares for. The question is what did...
Leveraged ETF's = buying daily short dated option premium with high time decay. You need a big move to be compensated. I would hope you have...
When you think about trading leveraged ETF's or ETN's remember there is this drag that impacts its tracking error. They effectively buy options...
If you sell a call for a dollar, it can be exercised up to 5:30 pm approximately the same day so it doesn't have to happen during trading hours -...
Some quick thoughts for you, Here's the Premise of the Trade: I have a Bias from my Analysis that stock XYZ is going to make a HUGE move to the...
Yes - but you may find that the weekly options dont have the same strike prices so hard to roll existing positions.
The problem is that the implied vols have come down significantly from the 1980's as books proclaiming that selling premium is the way to make a...
Separate names with a comma.