tip
Option Trading Tip – Make A Promise & Get Paid Cash!
Writing Naked Puts is simply selling a put option on a stock that you would be happy to own should the price come down to your desired buy price.
When we write a naked put we are effectively ‘promising’ to buy someone else’s shares in the future should the stock price fall below a certain level.
For [...]
Option Trading Tip – How To LEAP Into Option Profits!
A LEAP (Long-term Equity Anticipation Product) is simply a long-dated option.
LEAP options that don’t expire upto 2 years into the future give the buyer much more time to be right about the future direction of a stock and at the same time offer tremedous leverage.
LEAP option trading has become quite popular in recent years because [...]
Option Trading Tip – Savvy Straddle Secrets
In basic terms there are only 2 types of options you can trade, Calls and Puts. As a buyer of options you always want the underlying stock to go up if you buy calls and down if you buy puts.
Determining which way a stock is likely to go is the challenge. However if you know [...]
Option Trading Tip – Covered Call Cashflow
Writing Covered Calls is a conservative strategy where you buy a stock that you would like to invest in and then write a call option against that stock.
This is a cash generating strategy that not only offers downside protection that you otherwise wouldn’t enjoy if you just bought the stock, but also gives you the [...]
Option Trading Tip – Credit Spread Cashflow
You may or may not have heard of credit spread option trading but they can be used to profit in bullish, neutral or bearish conditions.
They are a cashflow generating strategy that involves both the buying and selling of either calls or puts of different strike prices but same expiration date to establish an overall [...]