How to Set Perfect Stop Losses for Options (And Sleep at Night) Paid Members Public
A stop loss is a predetermined price level at which you'll exit a trade if it moves against you, limiting your potential loss. For options traders, setting effective stop losses is particularly challenging due to options' unique characteristics like time decay, volatility sensitivity, and leverage. Unlike stocks,
Risking $10 to Make $30: How Smart Option Traders Think Paid Members Public
Risk-reward ratio is a fundamental concept in trading that compares the potential loss of a trade (risk) to its potential gain (reward). A 1:3 risk-reward ratio means you're risking $1 to potentially make $3, or risking $10 to potentially make $30. This approach to trading focuses not
How to Place Your First Options Trade — Step-by-Step Walkthrough Paid Members Public
Placing your first options trade can feel intimidating, but breaking it down into clear steps makes the process manageable and straightforward. An options trade involves selecting the right underlying stock, choosing between calls and puts, determining the appropriate strike price and expiration date, deciding on the number of contracts, selecting
Reading an Options Chain Without Getting a Headache Paid Members Public
An options chain is a listing of all available option contracts for a particular security, organized by expiration date and strike price. It displays crucial information like bid/ask prices, volume, open interest, and implied volatility for each contract. Understanding how to read and interpret options chains is fundamental to
The Truth About Commissions, Hidden Fees, and How to Beat Them Paid Members Public
When trading options, understanding the full cost structure is essential for profitability. Beyond the advertised commission rates, brokers charge various hidden fees that can significantly erode your returns over time. These include per-contract fees, exercise and assignment fees, margin interest, data subscription costs, and platform fees. Since options trading often
Cash-Secured Puts: The Smart Way to Buy Stocks at a Discount Paid Members Public
The cash-secured put strategy is a powerful technique that allows investors to potentially purchase stocks at below-market prices while generating income in the process. It involves selling put options on stocks you'd like to own, while setting aside enough cash to purchase the shares if needed. When you
The Covered Call Secret: Earn Money While You Sleep Paid Members Public
The covered call strategy is one of the most popular and beginner-friendly options techniques that allows investors to generate additional income from stocks they already own. It involves selling (or "writing") call options against shares you hold, collecting premium payments in exchange for agreeing to potentially sell your
How to Get Paid for Saying 'Maybe': Selling Options Explained Paid Members Public
Selling options is a powerful strategy that allows traders to generate income by collecting premiums from other market participants. Unlike buying options, where you pay a premium and hope for a big move, selling options puts you in the position of the "house" – you collect premiums upfront and
