In times of high volatility, Buying deep in-the-money (ITM) options is a good way of implementing directional option trading strategies.
This is because high implied volatilities, will eventually begin to come back down to more ‘normal volatility’ levels and when this happens, the at-the-money (ATM) and out-of-the-money (OTM) options are going to suffer.
Deep in-the-money (ITM) [...]
Posted in Blog | Tagged buy, deep, inthemoney, option, options, tip, trading
Many traders have considered to trade forex at one point of their careers, this is because forex is the biggest, fastest, most liquid financial market in the world. Unlike other markets, forex has no physical location or actual market floor. It is done via telecommunication systems through banks and financial institutions. Since trades in forex [...]
Posted in Blog | Tagged forex, internet, on, the, trading
There was somebody who once said that the last frontier for man is trading. It is the final place wherein men and women can hold back and go against the world. What do you think about this statement? Maybe there is some truth about it.
Whether you will be winning or losing the fight completely [...]
Posted in Blog | Tagged currency, forex, on, tips, trading
Beyond all the ‘hype’ what is it that makes option trading so good?
This is a question that I wish more people would ask, but the thing is not too many people know they even exist!
The main reason that I love option trading is that options provide the opportunity to turn a small or modest amount [...]
Posted in Blog | Tagged option, options, so, tip, trade, trading, why
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 [...]
Posted in Blog | Tagged a, cash, get, make, option, paid, promise, tip, trading
This is a question that every option trader needs to ask themselves, especially those traders that are ’stressed out’ and losing more often than they are winning.
This is because when you have an option trading system that you are truly comfortable with i.e. you have backtested it extensively and paper traded it on live market [...]
Posted in Blog | Tagged are, in, option, psychology, sync, system, trading, your
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 [...]
Posted in Blog | Tagged how, into, leap, option, profits, tip, to, trading
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 [...]
Posted in Blog | Tagged option, savvy, secrets, straddle, tip, trading
