Options Trading

door-lock

On Tuesday of this week, our Smart Options advisory service locked in a 26% gain on a debit spread. While it may not have been a massive winner by option traders that take on directional, one-dimension trades, given the minimal risk we took on with the trade -- not to mention the fact  that we only held the position for a couple of days -- it's just another nice score for Smart Options subscribers. More important, however, the trade serves as a wonderful illustration of how debit spreads work, and how we do so well with them. This post-mortem of the 3M (MMM) spread trade assumes you have at least a basic understanding of options. If you don't yet, you may want to start out by looking at these pages for beginners. What is an option? What is a spread trade? How are options priced? Everyone else looking to learn… more


110717-avgo

This week, our Grand Slam options trading advisory booked a sizable winner, netting a 50% gain on some Broadcom (AVGO) calls purchased back on Wednesday, November 1st. Though the trade is in the past, there are several things about the trade — and the chart of AVGO — worth going back and studying, as they provide some lessons we can... more

101617-gold-gold-miners-etf

Like leveraged ETFs? A lot of traders do, and for good reason. Just a little movement from the market or a sector can translate into a lot of movement for an exchange-traded fund, and the availability of bearish and bullish leveraged funds means it doesn't even matter which direction that trade-worthy move is pointed. What if, however, there was a... more

market volatility swings 2015 option trading charting technical analysis etf active investor education

For options trading veterans, it's probably a term you've heard before, though it's not necessarily a term you know the actual meaning of. And for options trading newcomers, it almost sounds like a senseless term designed solely to confuse and/or intimidate. Don't sweat it if you don't know what the term means though. Selling volatility is a real thing, and... more

091217-tlt-pl

Earlier this week our Index Options Timer service booked 19% gain on a credit spread trade on the iShares 20+ Year Treasury Bond ETF (TLT)… a bearish bet, essentially.  In the grand scheme of things this trade wasn't all that different from any of the other trades we take on in the IOT newsletter. But, in that this particular position... more

gamma

On Thursday, our Options Shark trading advisory locked in a 57% gain on some Bed, Bath & Beyond (BBBY) puts… one of several nice winning trades the BigTrends team has made of late. Though we issue far more trading ideas than we could ever review — as a learning tool — this is one worth going back and taking a... more

071117-iron-condor-pl

The term "iron condor" can be an intimidating term, even to veteran options traders who haven't take on such trades before. But, the nickname for the strategy is more forlorn than it really needs to be. An iron condor is simply the combination of two spreads that — together — offer a position with a limited amount of risk regardless... more

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