Brokerages have changed significantly over the past 20 years. Aspiring traders with small accounts now can participate with much smaller accounts than in the past. When first thinking about trading, most if not all traders start with stocks. However, the cost of buying shares to trade can quickly use all of the cash in a small … [Read more...] about Improvements for Traders with Small Accounts
Calls and Puts are exchange-traded option contracts that were originally designed to act as insurance mechanisms to protect financial positions. These options are contracts between a buyer and seller that give the buyer a right and the seller an obligation to buy or sell a security at a specific price (the strike price) on or before the … [Read more...] about What are Calls and Puts?
I wanted to let you know how ExperSignal is progressing. Dr. Daniel Lyons is a long-time friend and the creator of ExperCharts software, which I'll be using to generate signals for the ExperSignal trade alert service. Daniel has PhDs in Cosmology and Applied Mathematics. His hand print algorithms he created many years ago have been … [Read more...] about ExperSignal Update
Ophir Gottlieb, CEO of Capital Market Laboratories, is speaking next week about their TradeMachine. I looked at the TradeMachine several years ago while it was relatively new. In the past several years, it has matured into a very powerful back trading and alerting system. So powerful in fact that banks and hedge funds now use … [Read more...] about CMLViz TradeMachine Webinar Replay with Ophir Gottlieb
The Mini-POT trial has come to an end. Mini-POT subscriptions are now available! The POT trades in the last several weeks have performed really well. Here is the performance since June 25th. Mini-POT trade history from 25 June 2019 to 12 July 2019HYPOTHETICAL PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS … [Read more...] about Mini-POT is LIVE!
A diagonal spread may be a strategy you would like to implement into your trading arsenal. Today we will discuss how a diagonal spread is created. We will also reveal some of the advantages and disadvantages of a diagonal spread. A diagonal spread is a strategy which occurs when two options are bought or sold. These two options use … [Read more...] about The “In’s and Out’s” of a Diagonal Spread
Scott Ruble (aka J.L. Lord) is starting a miniature version of his Practical Options Tactics, or POT class at Aeromir.com next week. What is POT? POT is Scott's flagship product at StratagemTrade.com that teaches options traders: How Scott trades with real-time trade messages3-6 Emails per day discussing Scott's views on the … [Read more...] about Mini-POT Trades Webinar Replay
First, a little about risk … Every trader is intimately acquainted with risk. Trading both stocks and options has large potential for rewards, but also risks. In order to sustain a successful trading career, a trader must be willing to accept risk. The basic rule of thumb I was taught many years ago when I first started … [Read more...] about Risk and Risk/Reward Ratio – Important Considerations
Steve Spencer at SMB posted a video of how to use options for swing trading. Steve used a synthetic stock position with a split strike, done for a credit. The video was posted at https://www.youtube.com/watch?v=nMq1TZFBToE Is that the best trade we can put on? Steve's trade uses $26,000 of margin. In the video, Steve says he … [Read more...] about Using Options For Swing Trading
Two stocks with options which are about the same price are not always equal. Volatility is one of the reasons two stocks with a similar underlying price may actually have very different values for their options. Volatility can be a useful tool to determine which underlying you would like to incorporate into your trade plan. The level … [Read more...] about Two Similarly Priced Underlyings Should Have the Same Option Pricing, Right? Not always so …