May 17, 2012
Options Bootcamp 5: Spread Trading Basic Training: Today we're going to dive into spreads. Spreads are really the defining characteristics of options. What is a spread? Why would you do a spread vs. trading an option outright? Max value of a spread is the differential between the two strike prices. Long call spread, aka...
May 7, 2012
Basic
Training: Turning to the dark side! It's time to learn how
to sell options. Why sell options? Time decay and theta. Collecting
theta, instead of paying theta, turning an enemy into a powerful
ally.
Example:
The Naked Call
The Naked Short Put