Sunday, March 18, 2012

Options Updates, Commentary and Tips from Option Alpha

Option Alpha - News, Commentary and Education

Updates, Commentary and Tips

The daily driver is the most robust of the investment vehicles. Typically this vehicle is extremely boring and not an attractive choice to most novice traders. Even though this vehicle is not the most exciting or fun way of investing, it is the type of vehicle that will create the passive income. Passive meaning it ...

Today we are opening the new position as follows: Trade: Sell DIA April 115 Puts Premium: $15 (0.15) Credit or better per contract Underlying Price: $132.41 Max Return: 1.30% Break-Even Price: $114.85 Time Until Expiration: 34 Days Probability of Loss: 4.00% Trade Explanation: For the Naked portfolio we are entering our 2nd trade for the April portfolio. A little more conservative but ...

This isn’t a trick or secret tip by any means – but maybe you just haven’t though about commissions like this before. You see, all of us have done the searching online for the “best” commissions. I know I still look around now and then to make sure I’m getting the best deal I can ...


Options trading involves opening and closing positions all the time right. And since the markets can turn on a dime, there are many times when exiting a position quickly becomes necessary. But before you can even be comfortable getting in and out of orders you have to know what tools you have at your disposal. ...

Today we are opening the new position as follows: Trade: Sell IWM April 64 Puts Premium: $20 (0.20) Credit or better per contract Underlying Price: $80.34 Max Return: 3.12% Break-Even Price: $63.80 Time Until Expiration: 45 Days Probability of Loss: 5.45% Trade Explanation: For the Naked portfolio we are entering our 1st trade for the April portfolio. If you didn’t catch the video ...

If you truly want to make more money trading options then you need to start thinking now about the options you trade now. Liquidity should be combined with other metrics as you perform your market research but some traders overlook its advantages. In this post I wanted to share some of reasons why an option liquidity ...

You’ve decided that you want to really do all this trading stuff. Now you have to set up your stock charts so that it’s easy and simple to analyze the markets. A little time up front correctly setting up your charts now will save you time and money down the road. The key is to ...

Today we are opening the new position as follows: Trade: Sell RUT April 910 CALL AND Buy RUT April 920 CALL Premium: $60 (0.60) Net Credit or better per contract Underlying Price: $826 Max Return: 6.38% Break-Even Price: $910.60 Time Until Expiration: 57 Days Probability of Loss: 6.86% Trade Explanation: For the Credit Spread portfolio we are adding our 1st trade for ...

Placing your first option trade is not as hard as it may seem. You’ll never learn until you do it so let’s walk through placing your first trade step by step right now. At the end of this quick tutorial, add your comments and let me know if you think this was helpful in getting ...

Many traders lose simply out of ignorance – as bad as this sounds it’s completely true. Honestly I throw myself into this category as well somethings when I see something I know I should trade on and I don’t. You see most investors base their trades on hunches, news, or tips from friends which we ...

No comments: