Category: Options Essentials

  • What is Options Trading? Top 10 Things You Must Know Before Trading Options

    What is Options Trading? Top 10 Things You Must Know Before Trading Options

    Options Trading can be extremely rewarding. However, it is also a fact that majority of Options traders struggle to make money consistently. Before you begin to trade options, it is crucial to understand basic nature of options and how Options are different from other trading instruments e.g. stocks or forex. Here is simple, straight forward…

  • A Straddle Strangle Swap on Berkshire

    This post will explain what’s a Straddle Strangle Swaps option trading strategy? And also share a trade idea on how to use this strategy on Berkshire Hathaway (BRK.B) to make some money while learning it as well. A Straddle Strangle Swaps (SSS) is the sale of a front-month Straddle and the purchase of a back-month…

  • OPNewsletter Dec +5.3% (Open)

    The December portfolio’s weekly update is now available at the OP Discussion forum (Member’s only section). To access the Subscriber’s Page of the forum, sign on with your own username and password by clicking here. Continue to read full post as  I shall be sharing links to good articles/ resources. OPN December portfolio has invested…

  • Good Chance for the Market Close on High on Expiration Week

    From OP Contributor – Jiayu Chiu I have noted that expiration week is the most bullish week in a month. For the past 2 years, there is high percentage of SPX close on high in the expiration week in a month. Let see this month of statistics on how the SPX close : Feb 2007…

  • Feb 16th is an exciting day

    I mentioned in my past posts about the expiration day opportunities that can be categorized into two types i.e. Directional and Non-directional trades I am going to cover non-directional part with respect to pinning of stocks. For the beginners who are wondering what is pinning, it simply means, the tendency of stock’s price to close near…

  • Option Strategy Screener

    Here is the strategy screener I was referring to in my earlier post. This screener is an essential part of the OptionPundit’s Toolbox and I encourage beginners to use it to have an understanding of different option trading strategies before diving into option trading world beyond straight calls and puts. This screener from option industry…