Recently, we completed research that shows moving averages can be used as part of a strategy to find short-term, mean reversion trading opportunities. This may be surprising to some traders because it might seem odd to use a trend-following indicator like MAs in a short-term, mean reversion strategy. This research was just published in our… [Read More]
“Find a way to gain and edge. find a way to do your own statistical analysis to find things that other do not know.” That’s the message of options trader Jeff Augen in his provocative new book, Trading Realities. Here why Jeff believes that options are the best way for traders to deal with the challenges of randomness and volatility in the 21st century.
Of all the dilemmas that option traders face, the question of when to take profits or cut losses is frequently at the top the list. Here, Michael C. Thomsett shows you how to best navigate options trading with specific goals and a bailout point in mind.
Here’s an explanation of how the ratio write works to help you determine whether or not the strategy is a good match for your options trading.
Before entering into any option strategy, especially for covered call positions, traders should understand the rules. Here Michael Thomsett explains the forward rolling strategy
Once you understand what extrinsic value means in options trading, you will become better suited to manage risks more effectively. These tips by Michael Thomsett will help you to use extrinsic value to your advantage.
Calculating profit is the best way to judge and compare trading performance. But sometimes, figuring out profits on option trades can be very much complicated. Michael C. Thomsett makes it easier with these few tips.
As an options play, swing trading is one of the rare examples in which using soon-to-expire, in-the-money contracts provides you a benefit. Here’s a demonstration of how to use this option-based swing trading strategy to leverage your exposure and reduce market risks.
Carley Garner explains the theory of options selling and offers a practical approach for implementing some basic risk management techniques.
In this trading lesson, Carley Garner explains the put ratio spread and the best time to put this options trading strategy into practice.