A butterfly option spread is a multiple option position that involves the simultaneous purchase of calls or puts with the sale of calls or puts. The way the spread will be established will depend on how bullish or bearish one is on a market. The same rule applies with other option strategies; there is no… Read more.
Search Results for: options
Using Spreads to Sell Option Premium
This article was originally written by Jeff Coglianese on September 02, 2005. With the majority of options expiring worthless, many traders are interested in selling options. Options are a wasting asset. With no change in any of the underlying assumptions, an option will lose part of its value everyday until the option expires worthless. Time… Read more.
E-Mini Russell 2000 Futures FAQ
Much attention and trading volume is garnered by the S&P 500 futures and the e-Mini version of that contract. While it is an excellent market to trade, have you ever thought of trading the e-Mini Russell 2000 futures? This article will showcase the e-Mini R2K and give you the opportunity to paper-trade it with real… Read more.
The Taylor Trading Technique
In my opinion, George Douglas Taylor was one of the greatest trading thinkers, and luckily he left behind one book on trading: The Taylor Trading Technique. This book lays out his “Taylor Book Method” for swing trading in futures.
How To Avoid Top Trading Mistakes
In all my years of following the markets, I have found one methodology above all others that is the most effective for my day and swing trading. The Turner Breakout Reversal (TBR) method is designed to quickly scan a given market and determine if a particular market is heading for a breakout or reversal after… Read more.
An Option’s Delta: What Is It and What Does It Tell You?
Many traders have heard about an option’s delta, but they have no idea what it means or how they can implement it in their own trading strategy.
Credit Spreads: Collect Premium While Keeping Your Clothes On
Readers of this blog should be very familiar with option spreads. We have written in the past (Option Spreads Examined Further: Measured Ways to Play Your Market Hunch, Bear Put Spreads: An Alternative to Purchasing Puts, and Bull Call Spreads: An Alternative to Purchasing Calls) about the different ways traders can participate in leveraged markets… Read more.
I Understand Stocks, But What About Futures?
I was at a party the other night when someone asked me what I do for a living. I responded that I was a commodities broker. This spurred them to ask, “What is exactly is that? I understand stocks but what are commodities?” This is a question that I have faced several times and I… Read more.
Using Covered Calls and Puts to Gain Trade Management Flexibility
A covered call/put is an option strategy used by traders who hold a long/short futures position and sell a call/put option on the same underlying futures.
Futures Trading: What Are All of These Months?
Almost every new futures trader who I speak with understands basic market fundamentals but gets tripped up when learning about the different months in the futures markets. While this can seem confusing, it is actually relatively straightforward. Below I will tell you what commodity futures are, why they are traded in different months, and how… Read more.
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