The Myth of “Financing” a Long Option

Options Traders are often lured into believing that the less cash they pay for an options structure, the better. You must look at the full structure of an options trade to understand its risk and reward characteristics. In this video, we discuss an example of a “free option” that contains a huge risk, not obvious from the amount of cash that the position initially costs.

Preparing for Earnings Season

In this video Mike Bellafiore discusses ways you can prepare for earnings season, highlighting several ideas to better attack stocks.

Myth #2 of Options Trading

Options traders who don’t understand options synthetics will often get confused and believe that they can buy a synthetically equivalent trade for “a bargain price”. In this video, we explain why economically equivalent trades will always fill at the same price.