I am an active trader of option credit spreads on the SPX, NDX and RUT broad based stock indexes. I am very conservative and only enter into trades that have a very high probability of being profitable. I write OTM Bull Put Spreads first. During months when the market is moving sideways or [...]
To the average citizen, the stock market itself denotes something quite mind-bogglingly complex. Of course, options trading simply makes the merely complex truly confounding to such individuals. Providentially, the modern world is all about making complex things simple and this process has been aided effectively by the internet. Options trading is no longer as remote [...]

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Seasonal Spread Trade for Consistent Returns
Spread trading is a unique trading concept not all that familiar to the average commodity investor. The typical commodity trader analyzes a particular market, either from a technical or a fundamental standpoint, sometimes combining the two; makes a determination as to whether the market exhibits either a bullish or bearish [...]
Iron Condor Spread is the combination of a Bullish Vertical Credit Spread and a Bearish Vertical Credit Spread on the same underlying asset. Depending on how the spreads are constructed, option traders will potentially be able to obtain twice the collect premium over a single spread position. Since there are bullish and bearish spreads involved [...]
In options trading, there are some basic lessons that are the backbone of many other successful options trading strategies. How to engage in spread trading in options trading to enhance potential gains is one of these lessons.
Spread trading is a foundational tool that you should have in your options trading toolkit. It will [...]
The Implied Volatility (IV) of Calls needs separate treatment from the IV of Puts. Also, for specific options trading strategies treat the IV of both Puts and Calls as a combined bundle.Each option at each strike implies its own individual percentage value of the underlying product’s future volatility. This makes it unique from any other [...]
A major reason as to why people choose financial spread trading over other types of trading options is that it offers greater returns than other types of investments. Various taxes and other charges that go into traditional stock transactions will not be present in transactions used in spread trading.
First, there is no stamp duty [...]
In the past, trading on the movement and price direction of financial markets was largely the preserve of major banks, high net worth individuals and sophisticated investment houses. However, the advent of online applications like the Internet has now made it possible for retail investors with limited capital to trade worldwide financial markets in exactly [...]
Option is a very popular derivative because its price is cheaper than other derivative such as future. Blue chip stock is a very volatile stock but it is very expensive. However, by buying option of the blue chip stock, we could earn profit just similarly like buying the stock. Investing and trading option seem to [...]
Tags:
Arbitrage Strategy,
Ask Price,
Back Spread,
Bid Price,
Blue Chip Stock,
Breakeven P,
Derivative,
Expiration Date,
In-the-money,
Maximum Loss,
Maximum Profit,
Naked Option,
Option Trading Strategy,
Out-of-the-money,
Strike Price,
Time Value,
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