Recent Articles and Videos

How the options react in three different scenarios: up, down, and stagnant. Let’s look at how the options will react in the three scenarios: up, down, and stagnant. Remember, we have entered this trade already down $5,000 from the stock purchase. If the stock continued to trade down, the option position would produce no additional…click to read more.

Introducing the Amazing Stock Repair Strategy. This strategy involves buying one at-the-money call option while simultaneously selling two out-of-the-money call options on the same stock, in the same month. The construction of this trade is critical. First, you must make sure to purchase exactly the equivalent amount of at-the-money call options as shares of stock…click to read more.

In today’s markets, everyone from amateurs to professionals alike experience losses sometimes. Since the bubble burst, investors have come to understand that managing losses is just as important as attaining profits. We have all found ourselves in situations where we have purchased stock that proceeded to trade down leaving us with a loss or a…click to read more.


Saturday, November 10, 2007
Filed Under Intermediate Options Trading 

AT-THE-MONEY: An option whose strike price is equal to the current market price of the underlying stock. ASSIGN: To designate an option writer (seller) for fulfillment of his obligation to sell stock (call option writer) or buy stock (put option writer). The writer receives an assignment notice from the Options Clearing Corporation (OCC). CALL: An…click to read more.

Sometimes, Wall Street has a very convoluted way of looking at things. For instance, consider the term “smart money.” One would think the term “smart money” would refer to a professional investor with incredible talent or a fund manager, market strategist or analyst that has had consistent success over different market scenarios, spanning many years.…click to read more.

Market Talk – November 4, 2007

Tuesday, November 6, 2007
Filed Under Market Snapshots 

November 4, 2007 I honestly don’t know when this madness will end, and the US equities will just take their 25% correction like a man.  Last week, the FOMC, as expected, cut both the fed funds and discount rate another 25 basis points, but also finally made some not quite subtle comments regarding the stifling…click to read more.

Advanced Strategies

Friday, November 2, 2007
Filed Under Option Trading Articles 

Recently, (October and November ‘03), the giant biotech Amgen (AMGN) came under some intense pressure, trading down about $12.00 before it found what appeared to be a decent level of support, and began to consolidate. At this level, anyone interested in going long Amgen at a discounted price would be advised to do so. Implied…click to read more.

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