Building A Cash Flow Pipeline
Pure, single-direction trades like long calls, long puts…and debit spreads…require a significant movement in the underlying stock or index to be winners.
Never Be Assigned Again
SPY is an ETF – a security that tracks the SPX index through the price of its shares. Like an individual stock, you can trade the shares or hold them as an investment.
Options Lab – Adjusting Credit Spreads
There’s nothing wrong with that strategy. However, you could sometimes break even on the trade or make a lot of money with one simple adjustment.
The Rubber Band Effect
“Sure, we can take precautions, but gaps can easily blow up overloaded accounts. And they beg the question, what next?”
“Is this going to keep dropping like a waterfall? And how does one trade in this environment?”
“Let’s take a moment to go into what I’ll refer to as the “rubber band” theory of price action and how this applies to gaps.”
“Think about a rubber band.”
Trade Mistakes – Owning Up and Moving On
Over the course of the day, my algorithms had gotten me out of the trade, but the auto-sell order stayed on the books. It became a sell-to-open, and suddenly I found myself in possession of several short naked calls.
Treading Water and Getting Paid
…trading a ticker stuck in a well-defined range between support and resistance can be a goldmine for option sellers.
Horrorshow Cliffhangers
I fully expected a follow-through on SPY’s down move Wednesday. It didn’t happen that way.
Getting an Adjustment
Yesterday I turned two potential losing trades of $500-700 into two $20,000.00 winners.
Income Trading with Options
Many need help wrapping their heads around how I can receive a consistent weekly and monthly payout from the market. Here’s the process.
Acorns into Oaks
I believe it’s far better to make fewer, larger trades than many lower-probability ones.