Articles tagged with "strategy"

Why We Always Have to Use Limit Orders in Options Trading

Why We Always Have to Use Limit Orders in Options Trading

A few weeks ago, we discussed how a stop-loss order works and why they’re so important. While a stop-loss is a key piece to risk management, some investors may not prefer to have a “hard” stop-loss. That is, a stop-loss order that is placed with a broker. Others prefer to monitor the position and, if […]

Why You Should Use the Stop Loss Order

Why You Should Use the Stop Loss Order

Believe it or not, the stop loss order is one of the hardest to execute for traders. Particularly when it comes to new traders. No, it’s not technically any harder to implement than a limit or market order. But mentally, a stop loss can be hard to use because it means losses. This may seem […]

Picking the Perfect Trade: A Trading Guide for Beginners (Part 2)

In our last entry, we introduced the procedure for initiating a new trade. In essence, it boiled down to three things: Decide on a direction, a time frame and a strategy. So for example, let’s say we’re bullish over the next three to four weeks and plan to take advantage of that bias with a […]

Picking the perfect trade a guide for beginners

Picking the Perfect Trade: A Trading Guide for Beginners

The great thing — and daunting thing — about the stock market is its sheer vastness. There is no holy grail; there is no perfect market, sector, industry or stock to trade. It’s full of opportunity, yet full of pitfalls should you lose your way. When it comes to options trading, it simply comes down […]

Hate Your Spreads? Now You Can Filter by Strike Width

Hate Your Spreads? Now You Can Filter by Strike Width

Option Party recently unveiled a new feature allowing investors to filter by delta. Delta, which measures how much an option price will move for each $1 increase in the underlying stock, has several applications for traders. But enough about delta, we have another new feature to unveil: strike width filter.  Investors will now be able […]

Do You Use the Most Popular Options Strategies? Here They Are

Do You Use the Most Popular Options Strategies? Here They Are

Data is a big part of any business. Heck, just ask Facebook or Google about that. But even smaller companies like to have data on their customers to better improve their product offering. They want to know what is and what isn’t working. Or in Option Party’s case, we just want to know what our […]

Why It Pays to Develop Your Own Screeners

Why It Pays to Develop Your Own Screeners

In order to leverage the Option Party platform, users need their own screeners. By being able to customize their own screens, users can get the most out of our system and find trades that fit their strategies to a T. There are a ton of systems out there. Sometimes it’s one person or a group […]

Trading Options on Stocks vs ETFs Is There a Big Difference

Trading Options on Stocks vs. ETFs: Is There a Big Difference?

Some investors may wonder what the difference is between trading ETFs and stocks. This question only grows more complicated when options are introduced. To be frank, trading ETFs vs. stocks is quite different, as each asset has a different risk/reward profile. It doesn’t help that not all stocks are equal, nor are all ETFs. For […]

Why Liquidity Is So Important in the Options Market

Why Liquidity Is So Important in the Options Market

Liquidity plays an important role in all markets. Some assets are highly liquid — like stocks and bonds — that investors can sell at a moment’s notice. Have an unexpected medical bill and need $40,000? No problem. If you have money in the market and need it out, you could have it that same day […]

Flying Heavy With an Iron Butterfly

In our previous post, we talked about using iron condors. It’s a lot to breakdown, but here are the basics: sell 1 out-of-the-money bear call spread and sell 1 out-of-the-money bull put spread. We receive a net credit and hope the stock does not appreciate past our break-even prices. A long iron butterfly works in […]