The Naked AAPL Call
The naked call is defined as an option strategy where an option player sells (writes) call options without owning the underlying security. Some may refer to this strategy as an “uncovered call” or...
View ArticleExpiration Week: Butterflies
One of the major differences when learning to trade options as opposed to equity trading is the impact of time on the various trade vehicles. Remember that quoted option premiums reflect the sum of...
View ArticleSix-Year Low in the VIX? What’s It Mean to YOUR Options Trading?
The VIX, or CBOE’s Implied Volatility Index, hit a six-year low this week. What’s that mean to options trading? Lots! Options trading is greatly affected by implied volatility. At its most basic level,...
View ArticleImplied Volatility and the Debt Ceiling Crisis
In the last couple of months, the market has shown some good movement. The S&P 500 and Dow set their all-time highs and then promptly moved lower. Washington struggled to find common ground which...
View ArticleOutright Call Options and Put Options
Another topic that is brought up often in my Group Coaching class is buying call options and put options outright. When option traders first get their feet wet trading options, they often just buy call...
View ArticleA Credit Spread can be Similar to Insurance
Selling a credit spread involves selling an option while purchasing a higher or lower strike option (depending on bullish or bearish) with the same expiration and with the short option being more...
View ArticleButterflies, Expiration, the Importance of Time and Cindy Crawford
One of the major differences when learning to trade options as opposed to equity trading is the impact of time on the various trade instruments. Remember that option premiums reflect the total of both...
View ArticleImplied Volatility May Continue to Swing
The last several months, the market has shown some good movement with some wild swings. The S&P 500 and Dow set their all-time highs once again, and then promptly moved lower. Now we are about to...
View ArticleDo Your Equity Options Have Insurance?
If you have ever bought an option and watched the premium go south because of the underlying traded sideways or moved the wrong way, I bet you have thought what it would be like to be the seller of...
View ArticleHow Option Delta and Gamma Influence Each Other
Not sure if you have noticed, but the market has been very volatile lately. Stocks have been moving in sometimes dramatic fashion on a daily basis so it might be wise to review how option prices change...
View Article
