What is a Trend Line? A trend line is an upward or downward sloping line on a chart indicating movements of prices over a period of time, generally occurring after two or more points of resistance or support. You can choose to trade a market based on support “holds”and resistance “setbacks”, or get involved in… Read more.
Tips & Strategies
Know Your Limits: Day Trading Limits Explained
There are some pretty significant differences between the futures markets and the equities markets. The first big difference is the trading hours: the futures markets trade 23 hours a day for most markets versus an 8:30 AM (central time) open and a 3:00 PM close in the equities markets. The second difference is the ease… Read more.
Futures Options Spreads: Why Should You Use Debit or Credit Spreads?
One of the main questions I receive as a broker after presenting a futures option spread to a client is, “Why?” Traders want to know why they should be entering an option spread as opposed to purchasing or selling an option outright. This article will help to explain the Why behind entering an option spread.… Read more.
Is Option Selling the “Write” Strategy for You?
Options, by definition, are a wasting asset. Many first-time option investors learn this fact the hard way by watching their option contracts expire worthless.
Long Option Strangles: Another Play on Potential Volatility
All too often I hear about traders missing “The Big Move” because they fear losing money in a volatile market. This is a very real fear and one to be respected. However, if the traders had known about long option strangles, they would have been able to participate with a known risk. This article will… Read more.
Spread Your Wings with a Butterfly Call Spread
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.
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.
Why Trade Spread Options?
This article was originally published on June 17, 2005. Many traders are attracted to options on commodities. They typically prefer the limited risk–premium paid plus commission and fees–and unlimited profit potential features that are exclusive to buying long options outright. The problem with buying options outright, however, is that many traders buy out-of-the-money options because… Read more.
How to Use Options in a Volatile Market Climate
This article originally appeared in FutureSource’s Fast Break Newsletter on December 16, 2005. Today’s volatile markets offer many opportunities. Along with these opportunities come risks. The greater the volatility in a market, the bigger the risk. Many savvy investors are drawn to the options markets as a way to take advantage of large price swings… Read more.
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.
You must be logged in to post a comment.