The ratio spread is a neutral to slightly bullish strategy that traders use when the market outlook is flat to slightly higher. A ratio spread may also be utilized if a trader believes implied volatility levels may decline. A ratio spread…
Ask any successful trader or investor out there and they will almost certainly tell you that a solid understanding of risk management is the key to their success. In fact, all of them use simple tools for risk management. What…
The bull call spread is a long options position with a bullish bias. It may have several advantages over the purchase of outright long calls including less sensitivity to time decay (theta) as well as implied volatility (vega). Whether it’s used…
It’s no secret that options can be an extremely versatile and useful tool when used by themselves or in conjunction with an existing stock position. The cash-secured put writing strategy uses put options as a vehicle for potentially generating income…
Sure, you can be a successful investor on your own, but learning from the best can really accelerate your learning. Here are five habits that five successful investors all do. Do Your Homework Investing is not a bucket of balls…
Hey everyone! In case you haven’t listened to the 160 (!!!) episodes I’ve put on my podcast Chat With Traders, I’m giving you a chance to catch up this week. It’s hard to dig through so many great episodes to…
Any way you slice it, losing is part of trading. A big part. If you do not master learning how to lose like a pro, you are not going to be in the game for very long. There are two ways…
While many markets trade primarily electronically, some markets (such as the S&P 500 futures market) still are still trading the open in the pit. What’s the pit you ask? Well, this is a specific area on the trading floor that…
