The payout characteristics of short selling are similar to buying puts. The value of both instruments increases…
Category: Options Coach
Options: Why Buy Puts? To Make Money When You Think a Stock Will Fall in Price
Beginning options investors often struggle with the concept of put options. They have no trouble with call …
The Benefits and Pitfalls of Trading Options on ETFs
An exchange-traded fund (ETF) is a collection of assets that track specific investment categories.
For instance,…
Getting Started with Technical Analysis and Options Trading
You will likely hear about technical analysis during your trading experience. Technical analysis is a discipline…
Protecting Your Trades: How Puts Work as Portfolio Insurance
When you buy a new car, you look for insurance on the car. Most states require some form of coverage, but it is usually…
How to Use Options to Trade High Priced Stocks
With round lots of 100 shares becoming less important these days, we are seeing fewer stock splits it seems. …
Options: Meandering Market Tamed by Using a Straddle or a Strangle
When you hear talk of markets trending, people think of uptrends or downtrends. However, markets often get …
Use Options as Portfolio Insurance in Rocky Times
Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons…
Options Calls vs. Puts: What’s the Difference?
Options are nothing more than a contract with a specified premium, strike price and expiration date. Unlike…
How to Manage Risk Using Options
The consensus on options trading is that it is risky for the average investor. You’ll likely hear stories…
