Articles tagged with "income"

Don’t Forget About Put Options When Getting Long

The stock market is often compared to the casino. All too many times, some traders have found themselves wildly speculating about a potential stock or move in the broader market. This speculation essentially boils down to a bet on whether stocks will go up or go down. When it comes to the options market, there […]

Protect and Profit: How a Collar Trade Can Do Both

Like the long straddle trade – which involves traders purchasing both a call and a put on the same security, at the same strike price on the same expiration date anticipating a high-volatility event – the collar trade is often overlooked. The long collar trade – which involves owning a chunk of stock, selling calls […]

Cash Secured Put – Free Trade Idea

OPPORTUNITY There is an attractive cash secured put trade in Go Pro (GRPO). Currently it is trading for $9.18. CHARACTERISTICS There is a 72.7% chance the stock will close above 8.00 on 02-10-2017, and you will earn your target return of $171.15. There is a 77.3% chance the stock will close above 7.71 on 02-10-2017, […]

Covered Call – Free Trade Idea

OPPORTUNITY There is an attractive covered call trade in Advanced Micro Devices (AMD). Currently it is trading for $10.61. CHARACTERISTICS There is a 70.4% chance the stock will close above 9.50 on 02-03-2017, and you will earn your target return of $141.90. There is a 75.0% chance the stock will close above 9.21 on 02-03-2017, […]

Picking Your Perfect Trade Is Easier Than You Think

Picking Your Perfect Trade Is Easier Than You Think Earlier this month, we looked at how important it is for an investor to zoom out, in order to zoom in when it comes to trading. Meaning that in order to find the best trade for a given bias, it would be most prudent to first […]

Down the Rabbit Hole With Options: Searching for Profits

Imagine this: You’re either long or looking to get long equities and in order to lower your cost basis, collect some income and limit your downside risk to a certain extent, you plan to sell calls against your stock position. But instead of pulling up the nearest options chain and picking a random strike price, […]

Looking for Income? Boost Your Payout With Probabilities

Everyone wants and needs income, whether it’s from working, in retirement or from trading. It’s a sought after source that provides us with not only what we need, but also with what we want. In today’s world of low – and in some instances negative – interest rates, finding that income is becoming harder and […]

Cash-Secured Puts Vs. Covered Calls

Let us discuss two options strategies a lot of investors may think are similar. Investors are correct to assume these strategies are similar in many aspects, but they are not exactly the same. This article focuses on Cash-Secured Puts and Covered Calls. We define each strategy individually, and then how they are different from each […]

What Is a Covered Call Strategy?

Risk management is everywhere. When you’re climbing stairs, you face the risk of falling off. But when you hold a railing while climbing, you basically mitigate that risk. That’s risk management for you in the simplest of forms. Let’s get a bit more technical. Risk management is a process where the risk related to a […]

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