Prices are random, especially on smaller time frames. So what to do? — Marc Principato, CMT, Risk Disclaimer *No Relevant Positions
Assessing Risk: Trading Index Options vs. Stock Options
How do we choose the perfect security for trading options? The evolution of options trading strategies will continue to expand but the one thing that will never change is the relationship between volatility and risk when assessing your next options trade. One of the considerations when trading options is what underlying vehicle you should trade. Should you trade options derived … Read More
Options Trading as a Career: How to Find it
What does it take to become a successful options trader? This is a very complex question, but we will try to give a few brief thoughts on the subject. Most people believe that to be a successful options trader, it simply requires learning one of the many options trading strategies that provide the trader an edge over the market over … Read More
Using ATR With Your Trading
Hi Mike, I just spent the entire weekend finishing reading The Playbook and I just wanted to grovel at your feet a little bit. I loved it. OGT was my favorite trading book ever, and this book is an absolutely perfect companion. As a lonely trader doing it on my own, every time I read one of your books I … Read More
Maximizing Profits: Unlocking the Benefits of Understanding Options Trade Probabilities
Many who are new to options trading get excited when they hear about options trades that are “high probability”! What they think is that these option trades usually win and earn money. Thus a “low probability” trade must mean the chances of winning are lower. But is it really that simple? And why would anyone enter a low-probability trade if … Read More
How Do I Take the Next Step as a Trader?
Mike, I know you’ve heard it many times. It’s like telling a model that they’re attractive. 🙂 But, you guys put out some very informational items. Every other day, I listen to “How badly do you want to be successful?” Very inspirational! The one thing I suggest is writing something on the level of knowing when to increase your size. … Read More
Principles for Turning Options Trading Ideas into Profits
Is there a method to determine the probability of an options trade? One of the terrific characteristics of trading options versus trading stocks is that there are methods of calculating probability of profit before you initiate the trade. The features of time decay, strike price and option volatility are unique to options trading strategies and apply whether you are buying … Read More
Options Trading Basics: Calculating Return on Investment
One of the questions often asked about investing in options is “How much can I earn”? Questions like this show how easy it is to fool someone if they really don’t understand how to measure trade results from one trade to the next. To put it bluntly most options trading books don’t tell the whole story. One marketing approach actually … Read More