Every options trading questions

If you have a question or comments of your own, feel free to submit those via the form on the Contact Page. The Trading Stock Options FAQ page is for you. Great Option Trading Strategies site, if I think of a better or wittier answer in the future. Turning a Naked Put Into a Covered Put After the Put Has Gone In the Money? How Far Out Should You Go? When Do You Get Premium When You Write an Option? What Do You profit and Lose? Is it a Good Idea to Reinvest Dividends?

Do I Get Charged Interest for Writing Puts? How Much Option Greeks Do You Need to Know? Scroll down to see questions already discussed or ask your own. Do Reinvested Dividends Lower My Cost Basis? Have questions about options? Why Stick with a Losing Trade? Is There Really a Difference? Is he wasting his time? If those particular economic situations did exist as you mentioned, I would imagine that actual traders and funds on Wall Street would be taking advantage of those opportunities.

MBA route and missing the big picture. Personally, I think this is ridiculous and he could spend this time prepping for the GMAT. Or will he double that 5k every month in options to the tune of 4 million a year from now? My best friend from college and I have had a very similar career path. WS Traders actually have access to. QQQ fund and following price movements to guide his purchase decisions. At a good bank in options or at a good prop firm that specializes in market making options, you can make more than you would trading options at home, with lower transaction costs, better information, a better edge, and better stability with a base salary.

Lastly, I would read Dynamic Hedging by Taleb, although Hull is probably the good beginners one. Options, Futures, and Other Derititaves is great. Option Volatility and Pricing is great. It can be not difficult to get lost in too many choices. The goal is to make money. It took me many months of trial and error to answer this seemingly trivial question.

If you have not yet firmly answered this first and fundamental question, then it will be very hard for you to succeed at this game. This fundamental question is the basis for everything else that will follow as you develop your method. And I really mean this: take the time to do it right. The motivation for this exercise is to try and define your trading method so precisely that in could be put into lines of code for an HFT firm to use. If you narrow it down to stocks and options, you are then faced with the choice of multiple markets and types; penny stocks, small caps, large caps, biotechs, weekly and monthly options, for example. Remember, there are no right or wrong answer here. Do you trade on multiple markets and with many different instruments? Leave it to the pros to trade on multiple markets, and know that many pros often trade on just a single market with a single instrument. For example, trading weekly options versus trading Dow Jones stocks are two completely different worlds.

This choice fits my style and personality, and thus it is all that I trade. So what are you trading right now, and how does it align with your personality? So take the time to think about yourself, and thus discover what suits you best in this world. Which venue is best for you? These include commodities, futures, stocks and options, just to name a few. The choices you should make all boil down to your personality; not every market and trading instrument is right for everyone. Some trade just one name.

YOU in order to accomplish that goal. There is a vast array of trading instruments that you can trade. Watch the webinar with Bob Lang as he answers your options trading questions. Join us live and get your chance to ask your own trading questions! Think of all the attractive qualities you tap into when you buy an option. Buy a stock and if it rises you win.

Which is a characteristic all the more alluring six years into a bull market when most stocks have ascended into the triple digits. Since the cost of an option equals the risk of your position these contracts limit your liability should things turn sour. They are generally employed in the stock market, however, futures, commodity and forex markets has their presence too. If it rallies far, but not quick enough you lose. Stock traders live in the land of a single dimension. Magnitude and speed, in other words. This particular advantage tugs at the inner gambler in us all. Which is entirely logical of course.

If you buy an AAPL call option then AAPL stock has to not just rise, but rise far enough fast enough or you lose! If you buy AAPL stock all it has to do is rise and you win. Curse you long calls and puts! Milk before meat, as they say. Why do so many traders find churning out consistent profits with option buying so hard? When being introduced to options we usually equate long calls to long stock and long puts to short stock. Budding option traders begin their derivatives adventure with simple strategies. If it rallies quickly, but not far enough you lose.

Tis a problem of 3 dimensions. You have to keep close watch on recent price movement of the asset you choose and pick the right direction. Most traders are all too happy to master option buying. When buying an option contract, the biggest thing that can decide your success is the price movement. Step one is learning how to buy calls and puts. If it falls you lose. The second powerful attribute is leverage or the potential to generate outsized returns. Which is an okay comparison but a bit misleading, an oversimplification. Options are agreement which gives buyer the right to purchase or sell a financial instrument at a set price on or before a specific day.

These two extra dimensions are what make option buying more challenging than stock trading. So much promise, and yet so difficult to master. Saturday sessions for over a year. We routinely discuss in our meetings and emails what new things we are learning from you that no one else out there seems to tell us, and these are very important topics. He gives great support and resistance levels to watch for during the day so we can get an idea of where the market is heading. Hal to understand more about TUG.

TUG member for a year now and during that time have learned more about trading and more importantly about capital preservation than I ever learned during years of trading or from other mentors, some of whom were much more expensive than TUG. Buy and hold was no longer a viable way to make money. Hal constantly reminds us of the three pillars of good trading: Risk Management, charting analysis, and strategies. Hal during my one on one coaching session for his patience and understanding since my microphone was not working properly. In 2009 after watching my stock portfolio cut in half from the recent market crash I had an epiphany. Hal, including trading Eminis, indicator setups and risk management.

Sunday 30minute webinar which he posts free in Youtube. Hal presents the information. He makes his points clearly and concisely but he is always patient and really takes interest in his students. Hi, Hal I must let you know I am indeed grateful for all the works you and your team have done to offer the TUG service and all the brilliant videos and Secret Trader Sessions. Hal seems to almost love teaching as much as he does trading. Brent, It was great to meet you and the members of your Trader User Group this past Saturday. Hal is a great trader who is generous in sharing experience in the market. He is fluid in stocks, options and futures, with an expert grasp on trading, from the simple and binary, to complex and time sensitive strategies.

Hal, have had to buckle down and begin to learn this discipline. There is a lot to it, but have become committed. With concerns of the debt debate I felt it a good idea to take profits early in an IWM iron butterfly, normally I would have simply exited the entire trade at one time, BUT after listening to Hal and seeing how he uses the Donchian channels fast MACD, and the 4 cross 12, I applied that to a five min chart. Bottom line, he helps his group make money. Thinking that I could blow through just what I thought were the IMPORTANT videos. He calls the markets with acumen, is very personable, fun and professional.

He has such a global view of where everything is sitting and how it is all intertwined. Within the very short time of joining TUG, I must confess I have learnt a lot. Hal, I believe, possesses both qualities. This is a real community of traders with Hal at the helm. Understanding options synthetics and practical application of option synthetics are two completely different things. When I joined this group I was and still AM a Rat Brain Trader! Hal definitely has a passion for trading and teaching. Hal has provided me an education of practical and immediately usable information which has helped me avoid a number of mistakes and has made me a better investor. He is able to guide me to visual information and explanation in a very particular and clear manner.

In general, just being a member of the Traders User Group is so different from other subscription services where you are just a number with deep pockets. Option synthetics and Risk Management are key for successful options trading. TUG user group, the skype group, and the pre market group. Hal is a fantastic teacher and a humble person. Hal was willing to share with the group and at the same time ask for nothing in return. Option Trades has been my planned post retirement past time as well as the means of regular income.

After taking courses from some of the nationally known providers, I fortuitously stumbled upon TUG on the internet. Risk management was one topic that was casually mentioned, nothing like your presentation. No particular trading method, technique, method or approach discussed will guarantee profits, increased profits or the minimization of losses. The most important thing that I learned yesterday was watching that video on Risk Management! You can find the best ever explanation for practical application of option synthetics at TUG. In addition I have found the quality and content of the website to be superb!