Options Trading
The first—and perhaps biggest—challenge of options trading is understanding what an option is.
An option is a contract giving you the right, but not the obligation, to buy or sell a specific security at a specific price over a specific period of time. After that period of time has elapsed (known as “expiration day”), the option ceases to exist.
A call option gives you the right to buy the security.
A put option gives you the right to sell the security.
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Options Trading Post Archives
They say, “Be greedy when others are fearful.” With that in mind, I’ve built an options-based portfolio using only 5 big bank stocks.
Investors are always looking for the latest and greatest trading strategy. Unfortunately, many overlook my favorite options strategy to generate premium regardless of market direction.
2022 was a hard year for stocks. Fortunately, Cabot Options Trader had a better year. These are the best (and worst) options trades I shared with subscribers.
A quote by U.K. Prime Minister Benjamin Disraeli helped shape my options selling strategies early in my career, here’s how it affected me and how to use those strategies now.
Cryptocurrencies have lost two-thirds of their value in the last year; it’s not the first time that has happened and may not be the last. If you’re looking for a long-term play, consider this LEAPS options trade.
With a new year right around the corner, today I’m going to break down one of my favorite options investment strategies for profiting in almost any market.
With the right options strategy you can not only buy AAPL stock for a big discount but you can get paid for it while you wait too!
Broad indexes are down double-digit percentages this year, will a Santa Claus rally turn around the end of 2022?
The right options income strategies can help you generate yield in any market. Here’s how to use “The Wheel” on your favorite stocks.
Elevated volatility for all of 2022 has made these resilient, non-directional options strategies even more profitable for investors.
PTON and SNAP are two beaten-down growth stocks with great products and terrible charts. Here’s how I’d play a long-term rebound in each.
Overbought conditions in a popular and highly liquid ETF are setting the stage to deploy one of my favorite options strategies.
You may not consider yourself a professional trader, but these options strategies can help you manage your portfolio just like the pros.
This simple strategy for trading options can lead to steady income and the possibility for high share appreciation in blue-chip stocks.
Buying call options in beaten down stocks is one way to play an eventual rebound. Here’s how I’d approach it with AMZN & AAPL.