Tag: options trading
Options Education: A Butterfly With a Broken Wing
Last week I talked about a low risk directional options trade that I like quite a bit:  The Butterfly. I discussed how I don’t...
Options Education: The Butterfly Options Strategy
One of the more difficult aspects of writing a column such as this one is that I have little or no idea of the...
A Bullish Options Strategy With The Clock On Your Side
I want to discuss today an investment strategy combining stock and options that takes great advantage of time decay. It is absolutely a bullish...
Options Trading Education: Let’s Double the Diagonal
In the past two columns I have discussed spreading time, also known as calendar spreads. There are horizontal time spreads which use the same...
Options Trading Education: Spreading Time
Today I would like to discuss time. Time is a huge factor in making up the price of an option. Options are a decaying...
Options Trading: Two by One or One by Two
Today I want to talk about the one by two ratio vertical spread, both long and short. Both are excellent options trading strategies although...
Using the Straddle to Set the Wings of the Iron Condor
After some violent swings as the market continues to digest the pronouncements of Big Bad Ben and the resulting Bond Panic, we very easily...
My Twist on the Cash Covered Put Strategy
Hello, I’m back after my two week hiatus. For those curious about an amazing bike journey my wife and I made from Amsterdam to...
Options Education: Covered Calls Equal Naked Short Puts
It always amazes me how much bad, disingenuous or downright false information there is out there in options education land. And too many people...
Using Call Options as Upside Insurance
Everyone knows that put options are an excellent protection against a down move. Well, call options can be an excellent protection against an up...