For the third installment of our IVolatility for SteadyOptions series, we’re going to use the PnL calculator to explore a new Micron Technology, Inc. (MU)idea going into the March 20 earnings report.
Which stocks do you pick for options trading? In fact, does the underlying really matter? Many options traders ignore or overlook the critical importance of deciding which underlying to use for options trading. Focus often is on the richness of option premium as the sole factor determining which stocks to use for options trading.
According to Investopedia: Investment horizon is the term used to describe the total length of time that an investor expects to hold a security or a portfolio.The following set of charts are a great visual aid to help investors plan and set expectations for investing in the stock market.
Many options traders choose to write short puts as a way to take advantage moderate-to-high implied volatility and neutral-to-bullish price movement. This setup is a basic type that can be used by options traders at any level, requiring very little experience to manage.
“The only thing new in the world is the history you don’t know.” -Winston Churchill.
“It is critical to understand human nature if you want to succeed at investing. Basing their decisions on short-term results is in fact the biggest mistake investors make.” - Jim O’Shaughnessy.
Options traders often overlook the nature and role of diversification. In picking one strategy over another, and in deciding which companies to use for options trading, diversification should be one of the attributes worth study. Why do options traders need to think about diversification?
One of the most common questions Steady Options receives relates to managed accounts. Lorintine Capital is offering managed accounts for both Anchor Trades and Steady Momentum. This post will detail the current Steady Options managed account offerings and how they work.
The S&P 500 Index advance continues from its December 26th low at 2346.58, but it’s yet to exceed the December 3rd high at 2800.18.Will it continue?Will it crash? Will the bulls get their way? Find out in our short market review, followed by strategy suggestions, created using our Probability Calculator, currently available to all Steady Options subscribers.
SteadyOptions trades a variety of option strategies – straddles, hedged straddles, calendars, butterflies and iron condors, volatility trades, etc..Frequently these trades are designed to work together and complement each other, so for the last several years Steady Options has only analyzed total performance.
One of my all-time favorite investing books is Jeremy Siegel's Stocks For The Long Run, which is currently in its 5th edition. It's a true classic that I refer back to often. Professor Siegel lays out the compelling case for equities over extended time horizons such as 20 or 30 years.
The “common knowledge” about uncovered calls is that they are always high-risk. Conservative traders should avoid them. But is this always true? Risk bymost definitions is associated with specific strategies. So covered calls are low-risk and uncovered calls are high-risk. But this assumption is not always a fair one.
Perhaps the toughest part of trading options is figuring out what to do. For this we have advisors, seminars, newsletters and more. Yet, one tool that all investors need, but few utilize adequately, is data. This concept is parroted across the industry, but how does the average investor move from the desire to utilize data to the actual practice?
