Written By John Lindahl In our last article, we discussed the four types of Vertical Spread trades. Today we are discussing the combination of the two credit trades, a bull put and a bear call, which when combined formulate an Iron Condor. Iron Condor trades are used when the outlook of an equity [...]
Written By John Lindahl Options trading strategies provide significant advantages for traders by reducing risk, lowering cost, providing flexibility to meet changing market trends, and enhancing profitability. One such strategy is the use of “Spreads”. What is a Spread Spreads are trading strategies that combine the simultaneous buying and selling of options contracts typically [...]
Whether you’re buying put options or selling covered calls for income, the goal is to earn high returns with as little time and stress as possible. Easier said than done, of course. There are so many moving pieces associated with options trading, from the underlying stock itself to the strike price, expiration date, and more. [...]
Written by: John LinDahl What are these things called “options”? What is the mystique about them and are they as risky as people say? There are lots of myths about options and how they are supposed to be dangerous. While every investment contains risk, if used correctly, options can reduce risk and increase profits. [...]
Written by: John LinDahl There are many myths about options being risky. While risk is inherent in any investment, options, when used correctly, can mitigate risk, and increase profit. Have you ever bought a stock because you thought it was going to go up, but instead it went up a little, down a little, [...]
Selling covered calls is a great way to earn income in a relatively stagnant market, capitalizing on open positions you already have without exposing yourself to many downsides. But, figuring out how far out to sell covered calls is essential for earning a nice profit and getting to keep your shares. The expiration date you [...]
The goal with selling covered calls is to pocket premium income without having to actually sell your shares with the options contract expiring worthless. When done correctly, this can be a consistent way to generate profits without exposing yourself to much risk. However, the buyer of your contract may choose to exercise their right to [...]
Covered calls are seen as one of the lowest-risk stock investment strategies because you are hedging an existing position through premium income. But you need to look beyond the benefits of trading stock options through this strategy and assess the covered call risk as well. So, what are the risks of covered calls? Ultimately, it [...]
There’s nothing worse than seeing the trade you’d envisioned start to take a turn for the worse, falling apart right before your eyes. While much of this can be prevented with a sound strategy and the help of our stock analysis software, selling covered calls won’t always work out how you’d planned. With traditional stock [...]
From the basic differences between a call vs put to more nuanced strategies like long calls vs covered calls, there are so many different ways to navigate the options trading realm. But today, we’re going to put two very similar, yet different, strategies side by side: cash secured put vs covered call. A cash-secured put [...]
