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.
The Covered Call Ratio Write — the Portfolio Cash Cow
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.
The Forward Roll: Avoiding Option Exercise Indefinitely
Before entering into any option strategy, especially for covered call positions, traders should understand the rules. Here Michael Thomsett explains the forward rolling strategy
The Mystery of Option “Extrinsic” Value
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 Covered Call Profits – Not As Easy As It Sounds
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.
Using Options for Swing Trading
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.
Managing Your Portfolio With Options, Part 2
What’s the “Double-Whammy” short put strategy? In this conclusion to Michael Thomsett’s series on good portfolio management, he explains an options trading strategy that will not only add cash to your account, but also help manage your portfolio.