What is the most important aspect of trading? This is really not a difficult question. The answer is twofold: MAXIMIZE RETURN and MINIMIZE RISK. In this video, we discuss our current GLD position, how to lock in some profits, and how to manage the remainder of the position. Please follow me on Twitter: @cboesib Grab […]
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Pin risk occurs when the market price of the underlier of an option contract at the time of the contract’s expiration is close to the option’s strike price. In this situation, the underlier is said to have pinned. Click the video below to see me break down this important topic. Grab a free day pass […]
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Losing trades are a fact of life. But, it is how you define and manage your risk that keeps you in the game. Click the video below to see just how we accomplished that with our position in Alphabet (Ticker: $GOOGL). Follow me on Twitter: @MikeShorrCBOT Grab a free day pass to one of our […]
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If you have spent any time researching trading schools or trading signal services, you undoubtedly have come across many that claim that buying options is a proposition that loses up to 90% of the time and thus you should always take the other side and sell options. Sound great right? Problem is that these claims […]
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We discuss tirelessly about risk during the trading day. Risk is not something to avoid, but manage. Some risk management is pretty straightforward like when dealing with vertical spreads. Other types of spreads, like calendar spreads require a bit more work and a few more tools. Click the video below as I walk us through […]
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I am typically not a big fan of “rolling a position”. Typically you get one of two things or both. Either you increase your potential risk or you are just putting off the inevitable. In all cases, you are going to generate more fees. But there are times when it makes sense. When you hold […]
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Dealing with a losing trade. It’s not fun and certainly, no one looks forward to dealing with them. It’s a fact of life for a trader and you must learn to deal with them or you will never be ultimately successful. But, you also need to be informed (and thus empowered) to deal with the […]
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Not all options are created equally. There are different types of expiration styles as well as expiration time cycles. Here are examples of each: American Style Options The term “American style” in relation to options has nothing to do with where contracts are bought or sold, but rather to the terms of the contracts. Options […]
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If you have spent any time researching trading schools or trading signal services, you undoubtedly have come across many that claim that buying options is a proposition that loses up to 90% of the time and thus you should always take the other side and sell options. Sound great right? Problem is that these claims […]
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Remember, we trade in the world of PROBABILITIES and not POSSIBILITIES. This concept must be kept in mind. Click the video below when we outline these principals with our entry in Electronic Arts (Ticker: EA):
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