One of the fears about trading options is being hit by an event and the stock moving against you. A 5 contract trade opened at 2.00 can be vaporized in a day on some bad news. $1,000 nearly wiped out. Not easy to recover from that, either. I’ve been there many times. It [...]
Articles on: Options
Is there anything stock investors appreciate more than the ‘wall of worry’? I mean, is there nothing out there to be worried about? Of course not, but those ‘worry warts’ continue to throw everything negative at the markets and like teflon the indices seem to repel every shot. Ben Bernanke and the Federal Reserve have [...]
Bob talked about some different option strategies, focusing on iron condors. He took questions at the end.
Below is a frightening story of an options trader gone rogue. It is scary because I saw this train wreck happen right in front of me with my own two eyes. I’m sure you have heard stories like this, they are countless. But I for one do not like to see people lose money, at [...]
As an options trader the toughest part of finishing a trade is good timing. As a buyer the clock is always ticking away and when that expiration hits the result becomes final – win or lose. But you can eventually be right on the direction, but if that option expires before the move you are [...]
I wanted to share how we carefully managed risk around an options trade for subscribers in Explosive Options today for Herbalife that left us with profits and a risk-free trade into earnings. On Feb 2, we bought calls on Herbalife (HLF) as the technical picture had improved. Knowing competitor WTW was due for earnings in [...]