Dec 28, 2012
Basic Training: A quick review of spreads.
What are spreads? Why should we use spreads? How do the Greeks work with spreads? How do you calculate, performance, etc? Why do I want to net reduce my delta and exposure in these elements? What are some of the downsides to spreads?
Options Drills: Vertical Spreads
Verticals -...
Dec 5, 2012
Options Bootcamp 12: Weekly Options
Basic Training: What are weekly options? How do the Greeks differ in the...
Nov 28, 2012
Basic Training: Busting Options Myths:
1) Market makers know where the stops are, therefore market makers who take the other side of trades are taking advantage of retail customers.
2) The only way to trade profitably is to be a dark side short premium seller. Plus, credit spreads are better than debit spreads.
3) I...
Nov 8, 2012
Options
Bootcamp 10: Common Trading Mistakes
Basic Training: Your COs cover the most common
options trading mistakes:
- Writing long-term options for income.
- Using market orders in illiquid options.
- Not closing options offered at a nickel.
- Buying worthless OTM "lottery ticket" options.
- Selling when implied volatility is...
Oct 16, 2012
Basic Training: We're going to bust many of the myth and misconceptions the permeate through the options market, particularly to those new to retail options.
- Somewhere between 75-80% (or even more) of options expire worthless every month, therefore you should be an options buyer.
- Selling options is a risk-less, or near...