Jul 7, 2010 Selling Naked Puts Selling n aked options is considered to be a risky proposition by most people who understand how options work. However, there is one situation in which selling an uncovered option is a play I can endorse. When you sell ...
Jul 9, 2010 Trading Philosophy Today I'm sharing some of my trading/investment philosophy. These ideas work for me and I believe are universal. However, these are based on my experience and may not work for everyone. My reason for sharing them is to suggest that ...
Jul 12, 2010 Questions and Answers I cover a lot of different topics in my Options for Rookies blog, and to me, the most attractive feature is the conversations I have with readers. Questions are answered in detail and various ideas are presented for discussion. ...
Hello, Mark I look for your help: I`m TIRO in options trade and we are new US Permanent Residents, so sorry for my English. I keep 300 chares of PDLI that I bought in March 2010 for $7.20 (275 chares) and $6.63 (25 shares). Today ...
Jul 16, 2010 What Can I Trade? When interested in trading options, certain pieces of information are necessary. Despite the availability of Google, not everything is easy to find via search engines. 1) Which stocks have listed options (listed simply means the options trade on ...
Jul 19, 2010 I'm Bullish (Bearish): What Can I Trade? Let's say you decided to take a long position in a given stock, but prefer not to buy ~10 shares with your $500 of available cash. Let's also assume that you don't want to gamble ...
Jul 10, 2010 Bullish Trade. Part II. Call Spreads Last time we looked at buying an ITM call option. (Jul 19, 2010) One of the best characteristics of options is the ability to use them to reduce risk. That involves a technique known as hedging. ...
Jul 23, 2010 Bullish Trades. III Call Spreads Last time we looked at buying a call spread when the strike prices were 5 points apart.. This is a typical example of a debit spread. That means that the calls bought have a higher premium (price) ...
Jul 26, 2010 Covered Call Writing . I Covered call writing is a very commonly used strategy. For good reason. Most of the time it is profitable to adopt this strategy, and over the longer term, it provides superior returns with less overall risk. That's ...
July 28, 2010 Covered Call Writing II Investment club members are usually conservative investors. They carefully choose stocks to buy and plan to hold investments for an extended period of time. If the company continues to grow, the value of the stock should increase accordingly. ...
Aug 2, 2010 Covered Call Writing III Expectations I've discovered that writers of covered calls often don't understand the rules of the game they are playing. This often leads to disappointment. Let's take the time to go over some basic details. 1. As the seller ...
Aug 4, 2010 Sell Stock Above Market Price Even conservative investment clubs recognize when the time is right to sell a stock that has either underperformed or perhaps has reached the point at which the rate of growth is expected to decline. It's easy to ...
Aug 9, 2010 Recommended Option Strategies I recognize that not everyone who visits here trades exclusively for an investment club. Some of you trade individual accounts. Thus, I thought I'd share a list of my favorite option strategies. When mentioning this methods, the emphasis is ...
Aug 13, 2010 A Bit of Trading Wisdom I found this quote while reading financial blogs, and thought it worth sharing: "Good traders know that opportunistic speculation is a process. Ignore any one single outcome, focus on the methodology that can consistently avoid catastrophic losses, ...