In today’s article, I want to answer a few questions about why options can be dangerous.
What are the risks of trading options? Are puts or calls riskier? Why is option selling risky? We’ll also talk about the safest options trading strategy.
So let’s get started and let’s jump right in.
Buying Calls & Puts
First of all, you need to understand that there are...
You might have heard this, “90% of traders lose 90% of their money in the first 90 days of trading.”
This is known as the 90/90/90 rule. I don’t even know if this is true, but it seems that a lot of traders are losing money.
So this is why today, we’re going to talk about what causes most traders to lose money. Then I’ll give you practical tips on how to avoid...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to...
I’ve been trading for a long time, and over the years, I’ve learned different ways to make the most of my time.
Today, I want to talk about three ways I boost productivity in my trading day:
- Using my PowerX Optimizer to quickly scan for long and short trading ideas.
- Using my Wheel Income Calculator to find attractive premium collecting ideas.
- Having a...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to...
What Is The Poor Man’s Covered Call?
Questions we’ll answer in this discussion:
- What is it?
- Who is it for?
- When to use it?
The Poor Man’s Covered Call is a very specific type of spread. As you know, we’ve been covering option spreads for several Coffee With Markus Sessions.
We’ve also covered the Covered Call’s strategy in-depth on our YouTube...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to...
I think everyone can generally agree that idle cash sitting in your account doesn't earn you much. Here are a couple of methodologies to deploy that capital to emulate dividend generation without being in the stock itself.
For purposes of this exercise, I've chosen HYG, which is not only options liquid, but also has a decent dividend relative to the broader...
What is the options assignment risk?
Trading options is a very lucrative way to make money in the stock market. Using the same methods that I teach in my trading PowerX Trading Strategy, I was able to turn a 25k account into a 45k account in 2 months!
25K to 45K in 2 months? This sounds too good to be true… and I would like to tell you that it is NOT too...
Pictured here is a delta neutral ratio'd short strangle set up in the September '20 expiry. It pays 8.60 ($860) and has delta/theta metrics of 1.01/4.12, and extrinsic currently equal to the premium received of 8.60.
The purpose of this demo is to show how continuous delta hedging might work in practice on a premium selling setup. The goal is to bring the setup...
(1) Not every underlying is "options liquid."
(2) Avoid trading "options illiquid" underlyings with options.
(3) Average share volume, the availability of both monthly and weekly expiries, the availability of one-half to dollar-wide strikes, and the tightness of markets are all indicators of option liquidity.
(a) Average Share Volume. Look for underlyings...
Over time, my basic approach to my IRA has been to acquire shares at substantial discounts over time and to take advantage of "the three legs": (1) short call premium; (2) dividends; and (3) growth, with the eventual goal to be able to solely or predominantly rely on dividends post-retirement, since "growth" can periodically be elusive and short call premium...
Typically, short puts have been the go-to methodology for acquiring shares at a lower price with the trade-off being that you don't take on the shares you want at the price you want, but keep the premium paid if the price of the underlying doesn't finish below your short put strike at expiry. That's not a bad thing, but what if (a) you want the ability to...
Let's face it. Being in a net delta long covered call in a market downturn can blow. Typically, the vast majority of covered calls are 70-80 net deltas long per one lot, depending on how aggressive your are with your short calls. There are a number of solutions to cutting that net delta to something more tolerable: (a) sell calls; (b) sell short call...
Unless you've been buried under a rock somewhere, you'll know that we've experienced a big, broad market move from the late December "Dump Everything, Including the Kitchen Sink" lows at SPY 234 to where we finished Friday. If you were bullish assumption directional in virtually any broad market instrument or exchange-traded fund at or near those late...
