Why Is Cryptocurrency Important?

Why Is Cryptocurrency Important?

Cryptocurrencies are no longer considered “niche” forms of payment. Despite the fact that there is still a lot of speculative activity in the cryptocurrency world, more individuals are beginning to understand the importance of these digital assets. Cryptocurrencies have the power to influence society, not only act as alternative assets.

If you’re wondering why cryptocurrencies are significant, it’s time to learn more about what they are and how they differ from traditional forms of cash. People may more effectively prepare for the technology’s role in the future of finance if they have a clear grasp of how cryptography operates.

Digital money and tokens known as cryptocurrencies can reflect real-world value without the need for a single central issuer. The ownership of cryptocurrencies is verified using encryption, public ledgers, and blockchain technology rather than going via a bank or a government. If users have internet connection, they can transmit these digital tokens to one another whenever they want for very little cost without worrying about censorship or having their money taken away.

The revolutionary aspect of cryptocurrencies is that they provide a means for people to exchange value without relying on a bank or a government. In fact, the creation of internet-based peer-to-peer money without a central third party was the main objective of Bitcoin’s (BTC) 2008 whitepaper.

Due to developments like smart contracts, cryptocurrencies have gained additional functionality since the launch of Bitcoin in 2009. Blockchains like Ethereum make it feasible to reinvent many platforms and business models that have come to dominate the contemporary internet and automate many traditional financial activities like trading, lending, and borrowing.

Although each cryptocurrency operates differently, they all rely on automated consensus processes to verify transactions.

Bitcoin’s proof-of-work (PoW) was the only cryptocurrency consensus method at first. To be eligible to validate a new transaction, PoW miners must utilize their computational capacity to crack a complicated problem. A new block is added to the public ledger of cryptocurrency transactions by whichever machine cracks a challenging computational challenge. PoW blockchains like Bitcoin compensate successful miners with BTC awards and transaction fees in order to motivate these miners.

However, since then, more consensus techniques, such proof-of-stake (PoS), have appeared. PoS mandates that in order to validate transactions, network users must lock the native digital token of the blockchain on-chain. People have a higher possibility of adding blocks and earning incentives the more tokens they bet.

Although there are technical drawbacks to these consensus processes, they are the primary means by which cryptocurrencies function decentralized.

Cryptocurrencies can be used by folks who lack access to banking facilities or who don’t trust their government without worrying about censorship or seizure. The key to crypto’s relevance is its decentralization, which lets people interact with money without depending on local institutions and governments. Since they are decentralized, cryptocurrencies are a fantastic financial instrument for the majority of people on the planet, especially in less developed or authoritarian financial systems.

Since cryptocurrencies like Bitcoin don’t have centralized decision-making institutions like the Federal Reserve, it is also difficult to tamper with them. The advantages (and liabilities) of self-custody and censorship resistance are available to anyone who store their cryptocurrency in a wallet. Millions of individuals might have access to capital through these traits, which is hard to inflate or seize.

Why Is Cryptocurrency Important?

Why Is Cryptocurrency Important?

Cryptocurrencies are no longer considered “niche” forms of payment. Despite the fact that there is still a lot of speculative activity in the cryptocurrency world, more individuals are beginning to understand the importance of these digital assets. Cryptocurrencies have the power to influence society, not only act as alternative assets.

If you’re wondering why cryptocurrencies are significant, it’s time to learn more about what they are and how they differ from traditional forms of cash. People may more effectively prepare for the technology’s role in the future of finance if they have a clear grasp of how cryptography operates.

Digital money and tokens known as cryptocurrencies can reflect real-world value without the need for a single central issuer. The ownership of cryptocurrencies is verified using encryption, public ledgers, and blockchain technology rather than going via a bank or a government. If users have internet connection, they can transmit these digital tokens to one another whenever they want for very little cost without worrying about censorship or having their money taken away.

The revolutionary aspect of cryptocurrencies is that they provide a means for people to exchange value without relying on a bank or a government. In fact, the creation of internet-based peer-to-peer money without a central third party was the main objective of Bitcoin’s (BTC) 2008 whitepaper.

Due to developments like smart contracts, cryptocurrencies have gained additional functionality since the launch of Bitcoin in 2009. Blockchains like Ethereum make it feasible to reinvent many platforms and business models that have come to dominate the contemporary internet and automate many traditional financial activities like trading, lending, and borrowing.

Although each cryptocurrency operates differently, they all rely on automated consensus processes to verify transactions.

Bitcoin’s proof-of-work (PoW) was the only cryptocurrency consensus method at first. To be eligible to validate a new transaction, PoW miners must utilize their computational capacity to crack a complicated problem. A new block is added to the public ledger of cryptocurrency transactions by whichever machine cracks a challenging computational challenge. PoW blockchains like Bitcoin compensate successful miners with BTC awards and transaction fees in order to motivate these miners.

However, since then, more consensus techniques, such proof-of-stake (PoS), have appeared. PoS mandates that in order to validate transactions, network users must lock the native digital token of the blockchain on-chain. People have a higher possibility of adding blocks and earning incentives the more tokens they bet.

Although there are technical drawbacks to these consensus processes, they are the primary means by which cryptocurrencies function decentralized.

Cryptocurrencies can be used by folks who lack access to banking facilities or who don’t trust their government without worrying about censorship or seizure. The key to crypto’s relevance is its decentralization, which lets people interact with money without depending on local institutions and governments. Since they are decentralized, cryptocurrencies are a fantastic financial instrument for the majority of people on the planet, especially in less developed or authoritarian financial systems.

Since cryptocurrencies like Bitcoin don’t have centralized decision-making institutions like the Federal Reserve, it is also difficult to tamper with them. The advantages (and liabilities) of self-custody and censorship resistance are available to anyone who store their cryptocurrency in a wallet. Millions of individuals might have access to capital through these traits, which is hard to inflate or seize.

trading weekly options on friday Arkansas

Overview

trading options in australia Arkansas Because it doubles my return to 32.

Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means. If I had invested my $186,000 into the S&P500 last July, I would have gained 5% ($9,300) as that�s the amount the index was up over that period. Just a month earlier, that number would have been in negative territory as the index was lower. In contrast, I locked in my revenue after each options trade was closed. I love that my profit is a real number added to the cash portion in my brokerage account rather than an abstraction based on the market trending higher. Another point to note regarding the capital at risk is that it doesn�t need to be sitting in your account in the form of cash. It will absolutely provide peace of mind if that�s the case, but you can invest it as you like to boost your returns. When I started this a year ago, my broker was paying me 1. 9% for idle USD in the account, so I was quite happy leaving it. However, that�s obviously not the case anymore, with interest rates at zero. But I could allocate that money into some safe dividend stocks and boost my returns that way. Which is somewhat the approach I�m taking. My Path ForwardTrading options may sound sexy, but it�s pretty tedious. I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing. I used to have to make manual trade confirmations at work. Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank. Except this one pays to feed my family!That said, the more you learn, the more you realize how little you know.

Unique Tactics:

binary options trading signal service Arkansas In my previous life, my job was to trade stocks for large institutions.

April and May of this year are write-offs because I was inactive. I hid under the blanket as the market was in free fall. I was pretty crafty in March, trading bearish strategies, but I put on only a single trade in April that was buying a put option on the S&P in case the market tanked further. We know that didn�t happen and so I lost that money. And in May, I didn�t put any new trades. My only activity was rolling existing positions further out in time. Excluding those two months, my average return on capital at risk was 1. 6% for a total annual return of 16. 4%What�s worth noting is, even though my average capital at risk was $186,000/month, my trade duration was, on average less than two weeks. Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means. If I had invested my $186,000 into the S&P500 last July, I would have gained 5% ($9,300) as that�s the amount the index was up over that period. Just a month earlier, that number would have been in negative territory as the index was lower. In contrast, I locked in my revenue after each options trade was closed. I love that my profit is a real number added to the cash portion in my brokerage account rather than an abstraction based on the market trending higher. Another point to note regarding the capital at risk is that it doesn�t need to be sitting in your account in the form of cash. It will absolutely provide peace of mind if that�s the case, but you can invest it as you like to boost your returns. When I started this a year ago, my broker was paying me 1. 9% for idle USD in the account, so I was quite happy leaving it. However, that�s obviously not the case anymore, with interest rates at zero. But I could allocate that money into some safe dividend stocks and boost my returns that way. Which is somewhat the approach I�m taking. My Path ForwardTrading options may sound sexy, but it�s pretty tedious. I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing. I used to have to make manual trade confirmations at work. Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank.

what are options in stock trading Arkansas #2: If the stock goes down, you can hold onto the shares and eventually sell the put.

I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means.

stern options trading Arkansas And a year after trying it out, I�ve made $29,753.

And then I went back to my button-pushing existence the next day. But this thing about options trading kept tugging at me in the back of my mind. I spent a few months reading up on it to understand some basic concepts. Once I felt I knew just enough to ask some not completely retarded questions, I emailed Suzy. For the next two years, I read through some pretty heavy and dry material while taking extensive notes. Colleagues at work would ask about the �Options Trading For Dummies� book I had on my desk.

options trading magazine Arkansas If the price of the shares goes above the strike price, then the losses are capped by simply trading the shares that the option writer already owns when the options are exercised.

If the price of the shares goes above the strike price, then the losses are capped by simply trading the shares that the option writer already owns when the options are exercised.

options trading for beginners Arkansas �I�d rather hustle 24/7 than slave 9 to 5.

Everything about it looked different.

options trading youtube Arkansas Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes.

When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math.

making millions trading options Arkansas But this thing about options trading kept tugging at me in the back of my mind.

7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change. Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes. The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached. The downside to the bull call spread is, of course, that any potential upside beyond the projected price increase is limited due to the corresponding increase in the cost to cover the written call options. Bear Put SpreadA bear put spread is the exact opposite of a bull call spread, where the trader purchases put options and also sells the same number of put options with the same expiry date but a moderately lower strike price. The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless. Traders use the bear put spread when they want to bet on a moderate decline in the price of a security. The premiums gained from the written options help to offset any potential losses if the security fails to fall in price significantly, and they are added to the profits if the price falls within the window of the written options expiring without value. However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price. Option Strategies StraddleA straddle option strategies involves the purchase of call options and put options at the same strike price, usually the current price of the security, and the same expiration date. Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums. Option traders use the straddle options strategy when they are unsure about the direction of an upcoming price change, but are confident in the intensity of the price change. While this kind of situation can arise for a variety of reasons, straddles are most often used when there is a significant event that is set to occur on or around a specific date. Press conferences and news releases are common events where traders expect significant price changes, but are not confident about the direction of the price change. Straddles can offer relatively low cost access to substantial profits with little downside risk, which is merely that the price change is not significant enough to cover the cost of both premiums. StrangleA strangle options strategy is similar to a straddle, but it uses the simultaneous purchase of call options and put options at different strike prices. This spread in the strike prices means that the underlying security needs to move more substantially for one of the options to be in the money, but the premium cost for purchasing the options is lower in the case of a strangle because the options are purchased out of the money. An option trader will use the strangle options strategy when they believe that the upcoming price change will be significant, but they are unsure of the direction. This situation occurs in the same sort of events as are popular for the straddle strategy, but the trader is more confident that the change in price will be extreme. The strangle can expire worthless, unlike a straddle, but the lower initial outlay on premiums means that a strangle may actually cost loss in the event of a loss than a straddle will with only a small change in price. The strangle also has a much stronger upside potential due to the lower initial premium cost and the greater potential value increase for options that were purchased out of the money. ButterflyThe butterfly options strategy involves the sale of call or put options at a given strike price, usually at the current price, matched by an equal number of purchased call or put options equidistant from the strike price. For example, if a trader sold 2 call options at $40, they would buy one call option at $45 and another at $35 to match the 2 written options sold. In this example, the loss from the trade would be maximized at either $35 or $45, while the trade would be profitable somewhere between the $35 to $45 range. The profit from the butterfly position would be maximized at $40.

Ideal Skills:

trading weekly options for income Arkansas

Contents

chuck hughes weekly options trading system Arkansas #2: If the stock goes down, you can hold onto the shares and eventually sell the put.

Like most things in life, it�s daunting at first, but then you get the hang of it.

Important Tactics:

startup options trading service seeks investment Arkansas Meaning I only had $96k of capital at risk at any one time, rather than $186k.

I sold a put option for March 6 expiry at $140 and received $100 of premium/income. Of course, the market tanked, and the trade was underwater. I, therefore, kept rolling the trade further out in time until the price recovered. On June 5th, I was able to close it finally for a profit of $500, much more then my initial premium received. The reason for the increased profit was because as the share price dropped, volatility had a massive spike. And when volatility is higher, the premium received for selling options increases, thereby allowing me to collect extra premium on each roll. The above is a chart of the name during the period I had the trade on. The green line is the $140 strike price I sold the put option/insurance contract at and so the trade was underwater the entire time it was below that line. What�s worth mentioning is, I�m trading options in the same names over and over again. I have a list of stocks and ETFs I�d be happy to own outright and hold for years. And I only trade options in these stocks. The reason is simple. I can sleep at night even when the trade is underwater, as I�m confident the share price will eventually recover. In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally. As the pandemic spread, the stock price took a nosedive along with the rest of the market. But it was quick to recover and even hit new highs as the world needed more semiconductors to keep pace with their newfound love of gaming and tiger king. I�ve put on similar trades repeatedly over the year and so let�s dive into the results. Here�s My ScorecardOne year after starting, with over a thousand executions, lots of late nights trading the US market from Asia, and endless hours of studying, I�ve logged a total profit of $29,753. Below is the breakdown per month. April and May of this year are write-offs because I was inactive. I hid under the blanket as the market was in free fall. I was pretty crafty in March, trading bearish strategies, but I put on only a single trade in April that was buying a put option on the S&P in case the market tanked further. We know that didn�t happen and so I lost that money. And in May, I didn�t put any new trades. My only activity was rolling existing positions further out in time. Excluding those two months, my average return on capital at risk was 1.

the options course high profit and low stress trading methods george fontanills Arkansas One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading.

The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached. The downside to the bull call spread is, of course, that any potential upside beyond the projected price increase is limited due to the corresponding increase in the cost to cover the written call options. Bear Put SpreadA bear put spread is the exact opposite of a bull call spread, where the trader purchases put options and also sells the same number of put options with the same expiry date but a moderately lower strike price. The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless. Traders use the bear put spread when they want to bet on a moderate decline in the price of a security. The premiums gained from the written options help to offset any potential losses if the security fails to fall in price significantly, and they are added to the profits if the price falls within the window of the written options expiring without value. However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price.

trading options online Arkansas What surprised me was how much I loved hitting the freakin buttons again!

I can sleep at night even when the trade is underwater, as I�m confident the share price will eventually recover.

spread options trading Arkansas �Damn it feels good to be a gangsta�Geto BoysIt was now time to grow a pair and start trading options.

If stocks are two dimensional with just a simple bid and offer, trading options was like entering the fourth dimension.

learn options trading Arkansas 82/share.

I was in awe as I read the book: The Option Traders Hedge Fund. The central premise from the author is how an options trader is a one-person insurance company, operating a solo business. The insurance business is summed up in a few bullet points:Calculating the risk for insurance policies soldReceiving adequate premiums for those insurance policiesPurchasing �re-insurance� to protect against tail-end risks like natural disasters, e. g. , flooding. Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does.

crash course in options trading Arkansas Yes, I may sound cynical, but I�m calling it how it is.

Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank. Except this one pays to feed my family!That said, the more you learn, the more you realize how little you know. And that�s how I feel right now. Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud. I realize how little I know and that I�m merely scratching the surface of the knowledge I need to feel fully confident in trading options for a living. And also how much more I need to hit the books.

financial advisor trading stock options Arkansas He responded by saying, �I trade options for a living.

Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging. I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted. Due to Nikola�s premiums being higher than the average stock, I buy puts set to expire in 5�8 days. For stocks with lower premiums, I�ll buy options with further out expiration dates. The further your expiration date, the more time you have for the stock to move in your direction. There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money. If you want to give the stock additional time to move in your direction, buy a closer to the money option with a further out expiration date. You�ll pay more for it, but the extra time is worth it. For a guide on what to not do with options, check out the article below. The Riskiest Way To Invest In StocksThis strategy is entertaining to watch but extremely stressful to implementProtect Your Portfolio From Downside With PutsOne of the best ways to buy options is through hedging. If you own shares of a company and are nervous about the short-term outlook, you can buy a put to cap your losses. This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto. This has happened to me a few times before buying options. #2: If the stock goes down, you can hold onto the shares and eventually sell the put. The put will shield you from most of your losses. #3: If the stock goes up, your put will lose value and eventually expire worthless, but it took off a lot of stress from your shoulders. You could focus on other things instead of worrying about the stock price or panic selling your shares. If the stock price isn�t likely to hit the strike price of your put, you can sell the put early to protect yourself from some of those losses.

Important Approaches:

trading weekly options course Arkansas

Contents

virtual stock options trading program Arkansas This has happened to me a few times before buying options.

I read success stories of people starting a side hustle that allowed them to quit their job. I even knew a couple. But I couldn�t figure out what my side hustle superpower could be until I stumbled upon options trading. Trading options was something I considered for people with insane levels of intelligence. And unfortunately, that isn�t me. When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math. People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down. Discovering Stock OptionsI love reflecting on significant life changes you can pinpoint to a single event � that so-called fork in the road. In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused.

Important Theories:

options trading course torrent download Arkansas April and May of this year are write-offs because I was inactive.

Just as you can make astronomical gains, you can also take on heavy losses if you don�t invest with the right approach. Success in options trading is a combination of skill and luck. Skill puts you in the position for massive gains and luck allows those massive gains to materialize under your timeline. In this article, I�ll talk about some of the trades I did, what to do, and what to avoid. Selling Covered Calls Is The Best Way To Get StartedFor a while, I resisted buying options because I saw it as gambling. And yes, you can buy options in a way that makes it pure gambling, but that doesn�t apply to all bought options (we�ll talk about buying options later). My introduction to options was selling them. When you sell options, you collect a premium rather than you paying up to buy the option. You become the seller rather than the buyer and get paid accordingly. Selling covered calls and cash secured puts has allowed me to earn returns that crush what I used to make back in my dividend investing days. I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?To set up a covered call, you need 100 shares of a stock.

best paid options trading service Arkansas However, that�s obviously not the case anymore, with interest rates at zero.

You then set a strike price for that covered call. The closer the strike price is to the current price, the more you�ll earn in premiums. Setting out a further expiration date also increases your premiums. The only catch is that you cap your short-term gains. While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside. If you set a strike price of $20 and the stock goes up to $25, you have to sell your shares at $20 each rather than at $25 each.

trading gold options Arkansas How I Made $5,000 Trading Options In Under 2 MonthsTips to get started and what to avoidYou can make far more money trading options than buying and holding onto stocks.

Excluding those two months, my average return on capital at risk was 1.

the forex options course a self study guide to trading currency options Arkansas All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night.

This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto. This has happened to me a few times before buying options. #2: If the stock goes down, you can hold onto the shares and eventually sell the put. The put will shield you from most of your losses. #3: If the stock goes up, your put will lose value and eventually expire worthless, but it took off a lot of stress from your shoulders. You could focus on other things instead of worrying about the stock price or panic selling your shares. If the stock price isn�t likely to hit the strike price of your put, you can sell the put early to protect yourself from some of those losses. The protective put that attributed to most of my gains thus far was a protective Fastly put. I bought this put right before Fastly lowered their revenue guidance and the stock tumbled in after hours. I talked more about Fastly�s after hours tumble and explained how I�ve been playing the stock moving forward. The stock went down $33. 48 by the end of the day. My $500 put turned into $3,083. 24 by the time I sold it which shielded my losses by $25. 82/share. So rather than losing $33. 48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options.

delta options trading Arkansas That�s the skill part.

Before the market crash, I was exploring a couple that I would love to have in my rotation. One is the very cool sounding reverse iron condor, which is used to profit from significant moves around earnings announcements. When you think there�ll be a move either up or down, but are unsure of which way, this is the strategy to use. Another is deep in the money covered calls around ex-dividend days. The reason for my interest in these two strategies is that they are generally closed within just a couple of days, thereby minimizing market exposure. It�s, therefore, possible to increase returns while also reducing my exposure to the market movements. Sure, it�ll involve countless hours more of studying, but despite my mathematically challenged brain, it�s pretty fun. Imagine your back at school, and your Algebra 101 teacher tells you he�ll hand over a wad of cash if you work out the problem. That�s EXACTLY what this is. HustlinEven if you hate your job, you likely have some nuggets of wisdom from your experiences to parlay into a profitable side hustle. I had enough of pushing buttons for a living. And so I dedicated my time and effort, transforming my experiences into a side hustle that would provide personal and financial rewards. Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven. I�m gonna keep hustlin to see which of my skillsets I can leverage into income streams. You can do the same. �I�d rather hustle 24/7 than slave 9 to 5. �UnknownThat�s how I feel and maybe you do too. How I Made $5,000 Trading Options In Under 2 MonthsTips to get started and what to avoidYou can make far more money trading options than buying and holding onto stocks. You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options. However, options trading isn�t for the faint of heart. Just as you can make astronomical gains, you can also take on heavy losses if you don�t invest with the right approach. Success in options trading is a combination of skill and luck. Skill puts you in the position for massive gains and luck allows those massive gains to materialize under your timeline. In this article, I�ll talk about some of the trades I did, what to do, and what to avoid. Selling Covered Calls Is The Best Way To Get StartedFor a while, I resisted buying options because I saw it as gambling. And yes, you can buy options in a way that makes it pure gambling, but that doesn�t apply to all bought options (we�ll talk about buying options later). My introduction to options was selling them. When you sell options, you collect a premium rather than you paying up to buy the option. You become the seller rather than the buyer and get paid accordingly.

options trading research reviews Arkansas The reason for my interest in these two strategies is that they are generally closed within just a couple of days, thereby minimizing market exposure.

While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside.

rich dad poor dad options trading Arkansas The only catch is that you cap your short-term gains.

If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks. That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging.

Key Procedures:

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Post Outline

trading options on etrade Arkansas I did it for over ten years.

If you think the market is trending higher, you�ll use one set of strategies.

Unique Techniques:

best books on options trading Arkansas Everything about it looked different.

Selling covered calls and cash secured puts has allowed me to earn returns that crush what I used to make back in my dividend investing days. I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?To set up a covered call, you need 100 shares of a stock. You then set a strike price for that covered call. The closer the strike price is to the current price, the more you�ll earn in premiums. Setting out a further expiration date also increases your premiums. The only catch is that you cap your short-term gains. While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside. If you set a strike price of $20 and the stock goes up to $25, you have to sell your shares at $20 each rather than at $25 each. If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks. That�s why I recommend starting here.

elite options trading Arkansas If the price of the shares goes above the strike price, then the losses are capped by simply trading the shares that the option writer already owns when the options are exercised.

And unfortunately, that isn�t me.

options trading online college course Arkansas For stocks with lower premiums, I�ll buy options with further out expiration dates.

What I mean is, there are endless combinations of strategies you can set up depending on your view of the market. If you think the market is trending higher, you�ll use one set of strategies. If you�re unsure of which way the stock will move, but think there�ll be a decent move in either direction, there are strategies for that. And if you think the market is in a downtrend, just use those strategies! And these strategies have some pretty cool names: iron condor, bull call spread, calendar straddle, and iron butterfly. Okay, so that all sounds fancy pancy, but what is an actual stock option?�Simply put, a stock option contract gives the holder the right to buy or sell a set number of shares for a pre-determined price over a defined time frame. �Investopedia.

options swing trading Arkansas I hid under the blanket as the market was in free fall.

I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted. Due to Nikola�s premiums being higher than the average stock, I buy puts set to expire in 5�8 days. For stocks with lower premiums, I�ll buy options with further out expiration dates. The further your expiration date, the more time you have for the stock to move in your direction. There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money. If you want to give the stock additional time to move in your direction, buy a closer to the money option with a further out expiration date. You�ll pay more for it, but the extra time is worth it. For a guide on what to not do with options, check out the article below. The Riskiest Way To Invest In StocksThis strategy is entertaining to watch but extremely stressful to implementProtect Your Portfolio From Downside With PutsOne of the best ways to buy options is through hedging. If you own shares of a company and are nervous about the short-term outlook, you can buy a put to cap your losses. This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto. This has happened to me a few times before buying options. #2: If the stock goes down, you can hold onto the shares and eventually sell the put. The put will shield you from most of your losses. #3: If the stock goes up, your put will lose value and eventually expire worthless, but it took off a lot of stress from your shoulders. You could focus on other things instead of worrying about the stock price or panic selling your shares. If the stock price isn�t likely to hit the strike price of your put, you can sell the put early to protect yourself from some of those losses. The protective put that attributed to most of my gains thus far was a protective Fastly put. I bought this put right before Fastly lowered their revenue guidance and the stock tumbled in after hours. I talked more about Fastly�s after hours tumble and explained how I�ve been playing the stock moving forward. The stock went down $33. 48 by the end of the day. My $500 put turned into $3,083. 24 by the time I sold it which shielded my losses by $25. 82/share. So rather than losing $33. 48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride.

options spread trading Arkansas If the price of the shares fall, then the loss in the value of the underlying shares is somewhat offset by the premium from the written options that expired worthless.

Traders use the bear put spread when they want to bet on a moderate decline in the price of a security.

etf options trading strategies Arkansas Grasping Options TradingOptions trading makes me think of the magnetic toy blocks my kids play with.

The further your expiration date, the more time you have for the stock to move in your direction. There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money. If you want to give the stock additional time to move in your direction, buy a closer to the money option with a further out expiration date. You�ll pay more for it, but the extra time is worth it. For a guide on what to not do with options, check out the article below. The Riskiest Way To Invest In StocksThis strategy is entertaining to watch but extremely stressful to implementProtect Your Portfolio From Downside With PutsOne of the best ways to buy options is through hedging. If you own shares of a company and are nervous about the short-term outlook, you can buy a put to cap your losses. This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto. This has happened to me a few times before buying options. #2: If the stock goes down, you can hold onto the shares and eventually sell the put. The put will shield you from most of your losses.

robinhood options trading reddit Arkansas He�s PUMPED.

I was in awe as I read the book: The Option Traders Hedge Fund. The central premise from the author is how an options trader is a one-person insurance company, operating a solo business. The insurance business is summed up in a few bullet points:Calculating the risk for insurance policies soldReceiving adequate premiums for those insurance policiesPurchasing �re-insurance� to protect against tail-end risks like natural disasters, e. g. , flooding. Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time.

Critical Concepts:

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Thematic Study

options trading terminology Arkansas I have a list of stocks and ETFs I�d be happy to own outright and hold for years.

Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud.

Important Approaches:

day trading weekly spy options Arkansas It was pretty straight forward.

Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven. I�m gonna keep hustlin to see which of my skillsets I can leverage into income streams. You can do the same. �I�d rather hustle 24/7 than slave 9 to 5. �UnknownThat�s how I feel and maybe you do too. How I Made $5,000 Trading Options In Under 2 MonthsTips to get started and what to avoidYou can make far more money trading options than buying and holding onto stocks. You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options. However, options trading isn�t for the faint of heart. Just as you can make astronomical gains, you can also take on heavy losses if you don�t invest with the right approach.

vix options trading hours Arkansas I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing.

In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally. As the pandemic spread, the stock price took a nosedive along with the rest of the market. But it was quick to recover and even hit new highs as the world needed more semiconductors to keep pace with their newfound love of gaming and tiger king. I�ve put on similar trades repeatedly over the year and so let�s dive into the results. Here�s My ScorecardOne year after starting, with over a thousand executions, lots of late nights trading the US market from Asia, and endless hours of studying, I�ve logged a total profit of $29,753. Below is the breakdown per month. April and May of this year are write-offs because I was inactive. I hid under the blanket as the market was in free fall. I was pretty crafty in March, trading bearish strategies, but I put on only a single trade in April that was buying a put option on the S&P in case the market tanked further. We know that didn�t happen and so I lost that money. And in May, I didn�t put any new trades.

options trading advisory service reviews Arkansas My one-year-old is next to me, clapping his hands and drooling while standing in his walker.

If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks. That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging. I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted. Due to Nikola�s premiums being higher than the average stock, I buy puts set to expire in 5�8 days. For stocks with lower premiums, I�ll buy options with further out expiration dates. The further your expiration date, the more time you have for the stock to move in your direction. There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money. If you want to give the stock additional time to move in your direction, buy a closer to the money option with a further out expiration date. You�ll pay more for it, but the extra time is worth it. For a guide on what to not do with options, check out the article below. The Riskiest Way To Invest In StocksThis strategy is entertaining to watch but extremely stressful to implementProtect Your Portfolio From Downside With PutsOne of the best ways to buy options is through hedging. If you own shares of a company and are nervous about the short-term outlook, you can buy a put to cap your losses. This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto. This has happened to me a few times before buying options. #2: If the stock goes down, you can hold onto the shares and eventually sell the put. The put will shield you from most of your losses.

professional options trading course by online trading academy Arkansas Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums.

Which is somewhat the approach I�m taking.

weekly stock options trading Arkansas I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price).

And also how much more I need to hit the books.

slv options trading advice Arkansas However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price.

What�s worth mentioning is, I�m trading options in the same names over and over again. I have a list of stocks and ETFs I�d be happy to own outright and hold for years. And I only trade options in these stocks. The reason is simple. I can sleep at night even when the trade is underwater, as I�m confident the share price will eventually recover. In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally. As the pandemic spread, the stock price took a nosedive along with the rest of the market. But it was quick to recover and even hit new highs as the world needed more semiconductors to keep pace with their newfound love of gaming and tiger king. I�ve put on similar trades repeatedly over the year and so let�s dive into the results. Here�s My ScorecardOne year after starting, with over a thousand executions, lots of late nights trading the US market from Asia, and endless hours of studying, I�ve logged a total profit of $29,753. Below is the breakdown per month.

learning options trading course outline Arkansas 48/share, I only lost $7.

This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time.

Important Tactics:

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Post Outline

xlt options trading course Arkansas I reward him with a tummy tickle and he laughs.

This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time. The beauty is you even earn extra income while doing it. I can best illustrate this with a real trade I recently closed (obviously cherry-picked):On Feb 12th this year, a week before the market started it�s COVID-19 free fall, the SMH Vaneck Semiconductor ETF was trading at $150. I sold a put option for March 6 expiry at $140 and received $100 of premium/income. Of course, the market tanked, and the trade was underwater. I, therefore, kept rolling the trade further out in time until the price recovered. On June 5th, I was able to close it finally for a profit of $500, much more then my initial premium received. The reason for the increased profit was because as the share price dropped, volatility had a massive spike. And when volatility is higher, the premium received for selling options increases, thereby allowing me to collect extra premium on each roll. The above is a chart of the name during the period I had the trade on. The green line is the $140 strike price I sold the put option/insurance contract at and so the trade was underwater the entire time it was below that line. What�s worth mentioning is, I�m trading options in the same names over and over again. I have a list of stocks and ETFs I�d be happy to own outright and hold for years. And I only trade options in these stocks. The reason is simple. I can sleep at night even when the trade is underwater, as I�m confident the share price will eventually recover.

Key Theories:

options trading classes Arkansas This protection can be achieved by purchasing options contracts at the price of 2,400 (20% below the current market).

I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance).

how to get approved for options trading td ameritrade Arkansas The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading.

If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time. The beauty is you even earn extra income while doing it. I can best illustrate this with a real trade I recently closed (obviously cherry-picked):On Feb 12th this year, a week before the market started it�s COVID-19 free fall, the SMH Vaneck Semiconductor ETF was trading at $150. I sold a put option for March 6 expiry at $140 and received $100 of premium/income. Of course, the market tanked, and the trade was underwater. I, therefore, kept rolling the trade further out in time until the price recovered. On June 5th, I was able to close it finally for a profit of $500, much more then my initial premium received. The reason for the increased profit was because as the share price dropped, volatility had a massive spike. And when volatility is higher, the premium received for selling options increases, thereby allowing me to collect extra premium on each roll. The above is a chart of the name during the period I had the trade on. The green line is the $140 strike price I sold the put option/insurance contract at and so the trade was underwater the entire time it was below that line. What�s worth mentioning is, I�m trading options in the same names over and over again. I have a list of stocks and ETFs I�d be happy to own outright and hold for years. And I only trade options in these stocks. The reason is simple. I can sleep at night even when the trade is underwater, as I�m confident the share price will eventually recover. In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally.

stock options trading signals Arkansas I followed this stock for weeks before finally deciding to get started.

I read somewhere that the wealthiest individuals have seven separate streams of income.

options trading service Arkansas However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price.

4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means. If I had invested my $186,000 into the S&P500 last July, I would have gained 5% ($9,300) as that�s the amount the index was up over that period. Just a month earlier, that number would have been in negative territory as the index was lower. In contrast, I locked in my revenue after each options trade was closed. I love that my profit is a real number added to the cash portion in my brokerage account rather than an abstraction based on the market trending higher. Another point to note regarding the capital at risk is that it doesn�t need to be sitting in your account in the form of cash. It will absolutely provide peace of mind if that�s the case, but you can invest it as you like to boost your returns. When I started this a year ago, my broker was paying me 1. 9% for idle USD in the account, so I was quite happy leaving it. However, that�s obviously not the case anymore, with interest rates at zero. But I could allocate that money into some safe dividend stocks and boost my returns that way. Which is somewhat the approach I�m taking. My Path ForwardTrading options may sound sexy, but it�s pretty tedious. I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing. I used to have to make manual trade confirmations at work. Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank. Except this one pays to feed my family!That said, the more you learn, the more you realize how little you know. And that�s how I feel right now. Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud.

options trading training Arkansas He tried to explain the gist of it, but it was way over my head.

The central premise from the author is how an options trader is a one-person insurance company, operating a solo business. The insurance business is summed up in a few bullet points:Calculating the risk for insurance policies soldReceiving adequate premiums for those insurance policiesPurchasing �re-insurance� to protect against tail-end risks like natural disasters, e. g. , flooding. Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread.

research papers on options trading Arkansas ) but the bottom ten for math.

However, that�s obviously not the case anymore, with interest rates at zero. But I could allocate that money into some safe dividend stocks and boost my returns that way. Which is somewhat the approach I�m taking. My Path ForwardTrading options may sound sexy, but it�s pretty tedious. I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing. I used to have to make manual trade confirmations at work.

how to find a mentor and trading proram for options Arkansas In this story, it was a chance meeting with my first boss in the financial industry.

You then set a strike price for that covered call.

Important Methods:

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Overview

weekly options trading advisory Arkansas People were shocked when they found I worked in finance.

Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes.

Important Tactics:

options trading education training course Arkansas Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity.

Bear Put SpreadA bear put spread is the exact opposite of a bull call spread, where the trader purchases put options and also sells the same number of put options with the same expiry date but a moderately lower strike price. The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless. Traders use the bear put spread when they want to bet on a moderate decline in the price of a security. The premiums gained from the written options help to offset any potential losses if the security fails to fall in price significantly, and they are added to the profits if the price falls within the window of the written options expiring without value. However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price. Option Strategies StraddleA straddle option strategies involves the purchase of call options and put options at the same strike price, usually the current price of the security, and the same expiration date. Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums. Option traders use the straddle options strategy when they are unsure about the direction of an upcoming price change, but are confident in the intensity of the price change. While this kind of situation can arise for a variety of reasons, straddles are most often used when there is a significant event that is set to occur on or around a specific date. Press conferences and news releases are common events where traders expect significant price changes, but are not confident about the direction of the price change. Straddles can offer relatively low cost access to substantial profits with little downside risk, which is merely that the price change is not significant enough to cover the cost of both premiums. StrangleA strangle options strategy is similar to a straddle, but it uses the simultaneous purchase of call options and put options at different strike prices. This spread in the strike prices means that the underlying security needs to move more substantially for one of the options to be in the money, but the premium cost for purchasing the options is lower in the case of a strangle because the options are purchased out of the money. An option trader will use the strangle options strategy when they believe that the upcoming price change will be significant, but they are unsure of the direction. This situation occurs in the same sort of events as are popular for the straddle strategy, but the trader is more confident that the change in price will be extreme. The strangle can expire worthless, unlike a straddle, but the lower initial outlay on premiums means that a strangle may actually cost loss in the event of a loss than a straddle will with only a small change in price. The strangle also has a much stronger upside potential due to the lower initial premium cost and the greater potential value increase for options that were purchased out of the money. ButterflyThe butterfly options strategy involves the sale of call or put options at a given strike price, usually at the current price, matched by an equal number of purchased call or put options equidistant from the strike price. For example, if a trader sold 2 call options at $40, they would buy one call option at $45 and another at $35 to match the 2 written options sold. In this example, the loss from the trade would be maximized at either $35 or $45, while the trade would be profitable somewhere between the $35 to $45 range. The profit from the butterfly position would be maximized at $40. Options traders use the butterfly option strategy when they wish to bet on little or no upcoming price change. The purchased options act as a form of insurance against major price changes, putting a ceiling on the potential losses from the trade. Covered CallA covered call uses the actual underlying security to cover the potential losses of writing call options on the security. For example, if the option trader owns shares of company A, they can write call options at a higher strike price for a matching number of shares. If the price of the shares goes above the strike price, then the losses are capped by simply trading the shares that the option writer already owns when the options are exercised. If the price of the shares rise yet fail to reach the strike price, then the option trader gains both from the increase in the underlying shares and the premium gained from the written calls expiring worthless. If the price of the shares fall, then the loss in the value of the underlying shares is somewhat offset by the premium from the written options that expired worthless. Option traders use covered calls when they like the long term prospects of a security they own, but feel that the price is unlikely to increase in the short term or may even fall. In this case they are able to gain the premium from writing the call options with the security of owning the shares in case that the options expire in the money.

investopedia options trading course Arkansas Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much.

Considering my annual living costs are around $40,000, that�s REAL money. My one-year-old is next to me, clapping his hands and drooling while standing in his walker. He�s PUMPED. I reward him with a tummy tickle and he laughs. In my previous life, my job was to trade stocks for large institutions. I did it for over ten years.

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Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means. If I had invested my $186,000 into the S&P500 last July, I would have gained 5% ($9,300) as that�s the amount the index was up over that period. Just a month earlier, that number would have been in negative territory as the index was lower. In contrast, I locked in my revenue after each options trade was closed. I love that my profit is a real number added to the cash portion in my brokerage account rather than an abstraction based on the market trending higher. Another point to note regarding the capital at risk is that it doesn�t need to be sitting in your account in the form of cash. It will absolutely provide peace of mind if that�s the case, but you can invest it as you like to boost your returns. When I started this a year ago, my broker was paying me 1. 9% for idle USD in the account, so I was quite happy leaving it. However, that�s obviously not the case anymore, with interest rates at zero. But I could allocate that money into some safe dividend stocks and boost my returns that way. Which is somewhat the approach I�m taking. My Path ForwardTrading options may sound sexy, but it�s pretty tedious. I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing. I used to have to make manual trade confirmations at work.

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I had enough of pushing buttons for a living. And so I dedicated my time and effort, transforming my experiences into a side hustle that would provide personal and financial rewards. Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven. I�m gonna keep hustlin to see which of my skillsets I can leverage into income streams. You can do the same. �I�d rather hustle 24/7 than slave 9 to 5. �UnknownThat�s how I feel and maybe you do too. How I Made $5,000 Trading Options In Under 2 MonthsTips to get started and what to avoidYou can make far more money trading options than buying and holding onto stocks. You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options. However, options trading isn�t for the faint of heart. Just as you can make astronomical gains, you can also take on heavy losses if you don�t invest with the right approach. Success in options trading is a combination of skill and luck. Skill puts you in the position for massive gains and luck allows those massive gains to materialize under your timeline. In this article, I�ll talk about some of the trades I did, what to do, and what to avoid. Selling Covered Calls Is The Best Way To Get StartedFor a while, I resisted buying options because I saw it as gambling. And yes, you can buy options in a way that makes it pure gambling, but that doesn�t apply to all bought options (we�ll talk about buying options later). My introduction to options was selling them. When you sell options, you collect a premium rather than you paying up to buy the option. You become the seller rather than the buyer and get paid accordingly. Selling covered calls and cash secured puts has allowed me to earn returns that crush what I used to make back in my dividend investing days. I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?To set up a covered call, you need 100 shares of a stock. You then set a strike price for that covered call. The closer the strike price is to the current price, the more you�ll earn in premiums. Setting out a further expiration date also increases your premiums. The only catch is that you cap your short-term gains. While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside. If you set a strike price of $20 and the stock goes up to $25, you have to sell your shares at $20 each rather than at $25 each. If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks. That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day.

choose right options research trading Arkansas I read somewhere that the wealthiest individuals have seven separate streams of income.

YESSSSSSSSSSSS!For the first time since I started in finance, I was free to log in to my brokerage account and trade whatever the hell I wanted. �Damn it feels good to be a gangsta�Geto BoysIt was now time to grow a pair and start trading options. I had signed up for a newsletter that Suzy suggested, which provides regular trade ideas. That was perfect as it provided a framework to follow. Man, was it was exciting. Despite my career in trading stocks, options trading was completely new. Everything about it looked different. If stocks are two dimensional with just a simple bid and offer, trading options was like entering the fourth dimension. There were bids and offers for each specific price point, each at varying expiration dates. Like most things in life, it�s daunting at first, but then you get the hang of it. And it even becomes fun.

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The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached.

trading weekly options on friday Arkansas This protection can be achieved by purchasing options contracts at the price of 2,400 (20% below the current market).

In terms of specific actions I need to take, they mainly involve expanding my arsenal of trading strategies.

Unique Skills:

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Thematic Study

weekly options trading strategies Arkansas You can do the same.

You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options.

Ideal Ideas:

options trading services Arkansas If the price of the shares fall, then the loss in the value of the underlying shares is somewhat offset by the premium from the written options that expired worthless.

Nibble With Your Options BuysThe first time I bought options, I was extremely conservative.

trading options for dummies Arkansas To set up a covered call, you need 100 shares of a stock.

For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression. He tried to explain the gist of it, but it was way over my head. All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night. And then I went back to my button-pushing existence the next day.

etf options trading strategies Arkansas Everything about it looked different.

48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless.

best options trading advisor Arkansas And in May, I didn�t put any new trades.

Excluding those two months, my average return on capital at risk was 1.

best stocks for options trading 2020 Arkansas I�d get lots of orders to buy shares, and I�d push the buttons to execute.

Option traders use covered calls when they like the long term prospects of a security they own, but feel that the price is unlikely to increase in the short term or may even fall.

trading stocks vs options Arkansas Unfortunately, when you work at a bank, the compliance department attempts to prevent you from doing anything meaningful with your life, including trading options.

I was both excited and curious to see what he was up to.

best options day trading course Arkansas When you think there�ll be a move either up or down, but are unsure of which way, this is the strategy to use.

66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless. If you continue to do your research, you will spot additional opportunities. That�s the skill part. Luck eventually follows hard work, but make sure you only nibble on options so your losses don�t have a disastrous affect on your portfolio. 7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change. Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes. The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached.

Ideal Methods:

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Overview

options trading scottrade Arkansas Skill puts you in the position for massive gains and luck allows those massive gains to materialize under your timeline.

The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time. The beauty is you even earn extra income while doing it. I can best illustrate this with a real trade I recently closed (obviously cherry-picked):On Feb 12th this year, a week before the market started it�s COVID-19 free fall, the SMH Vaneck Semiconductor ETF was trading at $150. I sold a put option for March 6 expiry at $140 and received $100 of premium/income. Of course, the market tanked, and the trade was underwater. I, therefore, kept rolling the trade further out in time until the price recovered. On June 5th, I was able to close it finally for a profit of $500, much more then my initial premium received. The reason for the increased profit was because as the share price dropped, volatility had a massive spike. And when volatility is higher, the premium received for selling options increases, thereby allowing me to collect extra premium on each roll. The above is a chart of the name during the period I had the trade on. The green line is the $140 strike price I sold the put option/insurance contract at and so the trade was underwater the entire time it was below that line. What�s worth mentioning is, I�m trading options in the same names over and over again. I have a list of stocks and ETFs I�d be happy to own outright and hold for years. And I only trade options in these stocks. The reason is simple. I can sleep at night even when the trade is underwater, as I�m confident the share price will eventually recover.

Key Approaches:

spx options trading course Arkansas �I�d rather hustle 24/7 than slave 9 to 5.

If stocks are two dimensional with just a simple bid and offer, trading options was like entering the fourth dimension. There were bids and offers for each specific price point, each at varying expiration dates. Like most things in life, it�s daunting at first, but then you get the hang of it. And it even becomes fun. What surprised me was how much I loved hitting the freakin buttons again! And making money from home was surreal after being shackled to an office for the last decade. Grasping Options TradingOptions trading makes me think of the magnetic toy blocks my kids play with. You can arrange them in any which way, depending on what you�re trying to achieve. What I mean is, there are endless combinations of strategies you can set up depending on your view of the market. If you think the market is trending higher, you�ll use one set of strategies. If you�re unsure of which way the stock will move, but think there�ll be a decent move in either direction, there are strategies for that. And if you think the market is in a downtrend, just use those strategies! And these strategies have some pretty cool names: iron condor, bull call spread, calendar straddle, and iron butterfly.

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You could focus on other things instead of worrying about the stock price or panic selling your shares.

trading options course manhattan Arkansas Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes.

When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math.

options day trading service Arkansas I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted.

Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums.

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The reason for my interest in these two strategies is that they are generally closed within just a couple of days, thereby minimizing market exposure.

best options trading platforms Arkansas In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally.

6% for a total annual return of 16. 4%What�s worth noting is, even though my average capital at risk was $186,000/month, my trade duration was, on average less than two weeks. Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16.

options trading research websites Arkansas In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares.

People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down. Discovering Stock OptionsI love reflecting on significant life changes you can pinpoint to a single event � that so-called fork in the road. In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression.

Critical Techniques:

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Overview

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And unfortunately, that isn�t me. When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math. People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down. Discovering Stock OptionsI love reflecting on significant life changes you can pinpoint to a single event � that so-called fork in the road. In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression. He tried to explain the gist of it, but it was way over my head. All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night. And then I went back to my button-pushing existence the next day. But this thing about options trading kept tugging at me in the back of my mind. I spent a few months reading up on it to understand some basic concepts. Once I felt I knew just enough to ask some not completely retarded questions, I emailed Suzy. For the next two years, I read through some pretty heavy and dry material while taking extensive notes. Colleagues at work would ask about the �Options Trading For Dummies� book I had on my desk. Although I started to understand some of the theories, I had trouble picturing them in action. Suzy admitted in our email exchanges how it�s one of those things that only makes sense once you start doing it. Unfortunately, when you work at a bank, the compliance department attempts to prevent you from doing anything meaningful with your life, including trading options. Yes, I may sound cynical, but I�m calling it how it is. Although I was dying to put some trades on, I had to wait until I quit my job.

Critical Practices:

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The reason for my interest in these two strategies is that they are generally closed within just a couple of days, thereby minimizing market exposure. It�s, therefore, possible to increase returns while also reducing my exposure to the market movements. Sure, it�ll involve countless hours more of studying, but despite my mathematically challenged brain, it�s pretty fun. Imagine your back at school, and your Algebra 101 teacher tells you he�ll hand over a wad of cash if you work out the problem. That�s EXACTLY what this is. HustlinEven if you hate your job, you likely have some nuggets of wisdom from your experiences to parlay into a profitable side hustle. I had enough of pushing buttons for a living. And so I dedicated my time and effort, transforming my experiences into a side hustle that would provide personal and financial rewards. Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven.

binary options trading signals franco Arkansas He responded by saying, �I trade options for a living.

In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless. If you continue to do your research, you will spot additional opportunities. That�s the skill part. Luck eventually follows hard work, but make sure you only nibble on options so your losses don�t have a disastrous affect on your portfolio. 7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change. Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes. The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached. The downside to the bull call spread is, of course, that any potential upside beyond the projected price increase is limited due to the corresponding increase in the cost to cover the written call options. Bear Put SpreadA bear put spread is the exact opposite of a bull call spread, where the trader purchases put options and also sells the same number of put options with the same expiry date but a moderately lower strike price. The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless. Traders use the bear put spread when they want to bet on a moderate decline in the price of a security. The premiums gained from the written options help to offset any potential losses if the security fails to fall in price significantly, and they are added to the profits if the price falls within the window of the written options expiring without value. However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price. Option Strategies StraddleA straddle option strategies involves the purchase of call options and put options at the same strike price, usually the current price of the security, and the same expiration date. Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums. Option traders use the straddle options strategy when they are unsure about the direction of an upcoming price change, but are confident in the intensity of the price change. While this kind of situation can arise for a variety of reasons, straddles are most often used when there is a significant event that is set to occur on or around a specific date.

best options trading book Arkansas 9% for idle USD in the account, so I was quite happy leaving it.

48 by the end of the day. My $500 put turned into $3,083. 24 by the time I sold it which shielded my losses by $25. 82/share. So rather than losing $33. 48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless.

etf options trading strategies Arkansas Now I do it to record my profits!

I used to have to make manual trade confirmations at work. Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank. Except this one pays to feed my family!That said, the more you learn, the more you realize how little you know. And that�s how I feel right now. Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud. I realize how little I know and that I�m merely scratching the surface of the knowledge I need to feel fully confident in trading options for a living.

options trading program reviews Arkansas You become the seller rather than the buyer and get paid accordingly.

#3: If the stock goes up, your put will lose value and eventually expire worthless, but it took off a lot of stress from your shoulders. You could focus on other things instead of worrying about the stock price or panic selling your shares. If the stock price isn�t likely to hit the strike price of your put, you can sell the put early to protect yourself from some of those losses. The protective put that attributed to most of my gains thus far was a protective Fastly put. I bought this put right before Fastly lowered their revenue guidance and the stock tumbled in after hours. I talked more about Fastly�s after hours tumble and explained how I�ve been playing the stock moving forward. The stock went down $33. 48 by the end of the day. My $500 put turned into $3,083. 24 by the time I sold it which shielded my losses by $25. 82/share. So rather than losing $33. 48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless. If you continue to do your research, you will spot additional opportunities. That�s the skill part. Luck eventually follows hard work, but make sure you only nibble on options so your losses don�t have a disastrous affect on your portfolio. 7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security.

1 options trading course Arkansas Before the market crash, I was exploring a couple that I would love to have in my rotation.

And then I went back to my button-pushing existence the next day.

telegram options trading alerts Arkansas For the next two years, I read through some pretty heavy and dry material while taking extensive notes.

Excluding those two months, my average return on capital at risk was 1. 6% for a total annual return of 16. 4%What�s worth noting is, even though my average capital at risk was $186,000/month, my trade duration was, on average less than two weeks. Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means. If I had invested my $186,000 into the S&P500 last July, I would have gained 5% ($9,300) as that�s the amount the index was up over that period. Just a month earlier, that number would have been in negative territory as the index was lower. In contrast, I locked in my revenue after each options trade was closed. I love that my profit is a real number added to the cash portion in my brokerage account rather than an abstraction based on the market trending higher. Another point to note regarding the capital at risk is that it doesn�t need to be sitting in your account in the form of cash. It will absolutely provide peace of mind if that�s the case, but you can invest it as you like to boost your returns. When I started this a year ago, my broker was paying me 1. 9% for idle USD in the account, so I was quite happy leaving it. However, that�s obviously not the case anymore, with interest rates at zero. But I could allocate that money into some safe dividend stocks and boost my returns that way. Which is somewhat the approach I�m taking. My Path ForwardTrading options may sound sexy, but it�s pretty tedious. I�ve entered over a thousand executions into my spreadsheet this past year, which is something I LOVE doing. I used to have to make manual trade confirmations at work. Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank. Except this one pays to feed my family!That said, the more you learn, the more you realize how little you know. And that�s how I feel right now. Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud. I realize how little I know and that I�m merely scratching the surface of the knowledge I need to feel fully confident in trading options for a living. And also how much more I need to hit the books. In terms of specific actions I need to take, they mainly involve expanding my arsenal of trading strategies.

Critical Plans:

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options trading advice Arkansas And I fantasized about making money from home instead.

I was pretty crafty in March, trading bearish strategies, but I put on only a single trade in April that was buying a put option on the S&P in case the market tanked further. We know that didn�t happen and so I lost that money. And in May, I didn�t put any new trades. My only activity was rolling existing positions further out in time. Excluding those two months, my average return on capital at risk was 1. 6% for a total annual return of 16. 4%What�s worth noting is, even though my average capital at risk was $186,000/month, my trade duration was, on average less than two weeks. Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means. If I had invested my $186,000 into the S&P500 last July, I would have gained 5% ($9,300) as that�s the amount the index was up over that period. Just a month earlier, that number would have been in negative territory as the index was lower.

Ideal Techniques:

how to make money trading weekly options Arkansas To set up a covered call, you need 100 shares of a stock.

My only activity was rolling existing positions further out in time.

trading options in ira Arkansas And that�s how I feel right now.

comIt�s pretty straight forward.

telegram stock options trading alerts Arkansas I reward him with a tummy tickle and he laughs.

Imagine your back at school, and your Algebra 101 teacher tells you he�ll hand over a wad of cash if you work out the problem. That�s EXACTLY what this is. HustlinEven if you hate your job, you likely have some nuggets of wisdom from your experiences to parlay into a profitable side hustle. I had enough of pushing buttons for a living. And so I dedicated my time and effort, transforming my experiences into a side hustle that would provide personal and financial rewards. Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven. I�m gonna keep hustlin to see which of my skillsets I can leverage into income streams. You can do the same. �I�d rather hustle 24/7 than slave 9 to 5.

next level trading options newsletter Arkansas Like most things in life, it�s daunting at first, but then you get the hang of it.

While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside. If you set a strike price of $20 and the stock goes up to $25, you have to sell your shares at $20 each rather than at $25 each. If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks. That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging. I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted. Due to Nikola�s premiums being higher than the average stock, I buy puts set to expire in 5�8 days. For stocks with lower premiums, I�ll buy options with further out expiration dates. The further your expiration date, the more time you have for the stock to move in your direction. There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money. If you want to give the stock additional time to move in your direction, buy a closer to the money option with a further out expiration date. You�ll pay more for it, but the extra time is worth it.

best options trading platform Arkansas My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging.

HustlinEven if you hate your job, you likely have some nuggets of wisdom from your experiences to parlay into a profitable side hustle.

options trading stories Arkansas My $500 put turned into $3,083.

It was pretty straight forward. I�d get lots of orders to buy shares, and I�d push the buttons to execute. I�d then get lots of orders to sell and would push a different set of buttons. I got exceptionally talented at this button-pushing thing. I even wore a necktie once in a while to feel important while doing it. Not surprisingly, I GOT SICK of pushing the damn buttons. And I fantasized about making money from home instead. I read success stories of people starting a side hustle that allowed them to quit their job. I even knew a couple. But I couldn�t figure out what my side hustle superpower could be until I stumbled upon options trading. Trading options was something I considered for people with insane levels of intelligence.

trading options in an ira Arkansas The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless.

As the pandemic spread, the stock price took a nosedive along with the rest of the market. But it was quick to recover and even hit new highs as the world needed more semiconductors to keep pace with their newfound love of gaming and tiger king. I�ve put on similar trades repeatedly over the year and so let�s dive into the results. Here�s My ScorecardOne year after starting, with over a thousand executions, lots of late nights trading the US market from Asia, and endless hours of studying, I�ve logged a total profit of $29,753. Below is the breakdown per month. April and May of this year are write-offs because I was inactive. I hid under the blanket as the market was in free fall. I was pretty crafty in March, trading bearish strategies, but I put on only a single trade in April that was buying a put option on the S&P in case the market tanked further. We know that didn�t happen and so I lost that money. And in May, I didn�t put any new trades. My only activity was rolling existing positions further out in time. Excluding those two months, my average return on capital at risk was 1. 6% for a total annual return of 16. 4%What�s worth noting is, even though my average capital at risk was $186,000/month, my trade duration was, on average less than two weeks. Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16. 4% (29,753 divided by 96k instead of 186k). But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16. 4% return means.

Key Thoughts:

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Table of Contents

options trading returns Arkansas But putting these accounting shenanigans aside, let�s see what the more conservative calculation of a 16.

The strategy that has become the bread and butter of what I do is called a credit put spread.

Critical Tactics:

telegram options trading alerts Arkansas That was perfect as it provided a framework to follow.

Just as you can make astronomical gains, you can also take on heavy losses if you don�t invest with the right approach. Success in options trading is a combination of skill and luck. Skill puts you in the position for massive gains and luck allows those massive gains to materialize under your timeline. In this article, I�ll talk about some of the trades I did, what to do, and what to avoid. Selling Covered Calls Is The Best Way To Get StartedFor a while, I resisted buying options because I saw it as gambling. And yes, you can buy options in a way that makes it pure gambling, but that doesn�t apply to all bought options (we�ll talk about buying options later). My introduction to options was selling them. When you sell options, you collect a premium rather than you paying up to buy the option. You become the seller rather than the buyer and get paid accordingly. Selling covered calls and cash secured puts has allowed me to earn returns that crush what I used to make back in my dividend investing days. I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?To set up a covered call, you need 100 shares of a stock.

options prop trading alerts reviews Arkansas I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?

If the price of the shares fall, then the loss in the value of the underlying shares is somewhat offset by the premium from the written options that expired worthless.

trading options master course ebook pdf Arkansas I�d then get lots of orders to sell and would push a different set of buttons.

When you sell options, you collect a premium rather than you paying up to buy the option. You become the seller rather than the buyer and get paid accordingly. Selling covered calls and cash secured puts has allowed me to earn returns that crush what I used to make back in my dividend investing days. I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?To set up a covered call, you need 100 shares of a stock. You then set a strike price for that covered call. The closer the strike price is to the current price, the more you�ll earn in premiums. Setting out a further expiration date also increases your premiums. The only catch is that you cap your short-term gains. While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside. If you set a strike price of $20 and the stock goes up to $25, you have to sell your shares at $20 each rather than at $25 each. If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks. That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging. I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted. Due to Nikola�s premiums being higher than the average stock, I buy puts set to expire in 5�8 days. For stocks with lower premiums, I�ll buy options with further out expiration dates. The further your expiration date, the more time you have for the stock to move in your direction.

simple options trading for beginners Arkansas Meaning I only had $96k of capital at risk at any one time, rather than $186k.

He tried to explain the gist of it, but it was way over my head. All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night. And then I went back to my button-pushing existence the next day. But this thing about options trading kept tugging at me in the back of my mind. I spent a few months reading up on it to understand some basic concepts. Once I felt I knew just enough to ask some not completely retarded questions, I emailed Suzy. For the next two years, I read through some pretty heavy and dry material while taking extensive notes. Colleagues at work would ask about the �Options Trading For Dummies� book I had on my desk. Although I started to understand some of the theories, I had trouble picturing them in action. Suzy admitted in our email exchanges how it�s one of those things that only makes sense once you start doing it. Unfortunately, when you work at a bank, the compliance department attempts to prevent you from doing anything meaningful with your life, including trading options. Yes, I may sound cynical, but I�m calling it how it is. Although I was dying to put some trades on, I had to wait until I quit my job. Which leads me to�The Joy of Pushing Buttons For MyselfTwo years after my catch-up with Suzy, I was officially unemployed. YESSSSSSSSSSSS!For the first time since I started in finance, I was free to log in to my brokerage account and trade whatever the hell I wanted. �Damn it feels good to be a gangsta�Geto BoysIt was now time to grow a pair and start trading options.

turbotax options trading Arkansas For the purpose of this post, I�m going to refer to him as Suzy.

I Made $30,000 in My First Year Trading Options, Here�s How$29,753. That�s my profit from trading stock options for a full year. Considering my annual living costs are around $40,000, that�s REAL money. My one-year-old is next to me, clapping his hands and drooling while standing in his walker. He�s PUMPED. I reward him with a tummy tickle and he laughs. In my previous life, my job was to trade stocks for large institutions. I did it for over ten years. It was pretty straight forward. I�d get lots of orders to buy shares, and I�d push the buttons to execute. I�d then get lots of orders to sell and would push a different set of buttons. I got exceptionally talented at this button-pushing thing. I even wore a necktie once in a while to feel important while doing it. Not surprisingly, I GOT SICK of pushing the damn buttons. And I fantasized about making money from home instead. I read success stories of people starting a side hustle that allowed them to quit their job. I even knew a couple. But I couldn�t figure out what my side hustle superpower could be until I stumbled upon options trading. Trading options was something I considered for people with insane levels of intelligence. And unfortunately, that isn�t me. When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math. People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down.

what are options in stock trading Arkansas In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally.

Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging.

day trading options pdf Arkansas 2 and protect myself at $90 (10% below the market).

That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging. I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted. Due to Nikola�s premiums being higher than the average stock, I buy puts set to expire in 5�8 days. For stocks with lower premiums, I�ll buy options with further out expiration dates. The further your expiration date, the more time you have for the stock to move in your direction. There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money. If you want to give the stock additional time to move in your direction, buy a closer to the money option with a further out expiration date. You�ll pay more for it, but the extra time is worth it. For a guide on what to not do with options, check out the article below. The Riskiest Way To Invest In StocksThis strategy is entertaining to watch but extremely stressful to implementProtect Your Portfolio From Downside With PutsOne of the best ways to buy options is through hedging. If you own shares of a company and are nervous about the short-term outlook, you can buy a put to cap your losses. This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto.

Ideal Procedures:

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Thematic Study

options trading crash course for beginners henry will Arkansas The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value.

And also how much more I need to hit the books. In terms of specific actions I need to take, they mainly involve expanding my arsenal of trading strategies. Before the market crash, I was exploring a couple that I would love to have in my rotation. One is the very cool sounding reverse iron condor, which is used to profit from significant moves around earnings announcements. When you think there�ll be a move either up or down, but are unsure of which way, this is the strategy to use. Another is deep in the money covered calls around ex-dividend days. The reason for my interest in these two strategies is that they are generally closed within just a couple of days, thereby minimizing market exposure. It�s, therefore, possible to increase returns while also reducing my exposure to the market movements. Sure, it�ll involve countless hours more of studying, but despite my mathematically challenged brain, it�s pretty fun. Imagine your back at school, and your Algebra 101 teacher tells you he�ll hand over a wad of cash if you work out the problem. That�s EXACTLY what this is.

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If you�re unsure of which way the stock will move, but think there�ll be a decent move in either direction, there are strategies for that.

trading options greeks Arkansas You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time.

I followed this stock for weeks before finally deciding to get started.

best program options trading Arkansas Of course, the market tanked, and the trade was underwater.

You can do the same.

trading options as a professional Arkansas Sometimes you can strike it big with one of your options while at other times most of them can expire worthless.

I used to have to make manual trade confirmations at work.

options trading strategy Arkansas This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto.

After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0.

earnings options trading course Arkansas An option trader will use the strangle options strategy when they believe that the upcoming price change will be significant, but they are unsure of the direction.

In this case they are able to gain the premium from writing the call options with the security of owning the shares in case that the options expire in the money.

options advice trading Arkansas What�s remarkable is that you or I can be the one selling the options contract in that example.

Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time. The beauty is you even earn extra income while doing it. I can best illustrate this with a real trade I recently closed (obviously cherry-picked):On Feb 12th this year, a week before the market started it�s COVID-19 free fall, the SMH Vaneck Semiconductor ETF was trading at $150. I sold a put option for March 6 expiry at $140 and received $100 of premium/income. Of course, the market tanked, and the trade was underwater. I, therefore, kept rolling the trade further out in time until the price recovered. On June 5th, I was able to close it finally for a profit of $500, much more then my initial premium received. The reason for the increased profit was because as the share price dropped, volatility had a massive spike. And when volatility is higher, the premium received for selling options increases, thereby allowing me to collect extra premium on each roll. The above is a chart of the name during the period I had the trade on. The green line is the $140 strike price I sold the put option/insurance contract at and so the trade was underwater the entire time it was below that line.

Important Tactics:

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Thematic Study

introduction to options trading Arkansas Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security.

I realize how little I know and that I�m merely scratching the surface of the knowledge I need to feel fully confident in trading options for a living. And also how much more I need to hit the books. In terms of specific actions I need to take, they mainly involve expanding my arsenal of trading strategies. Before the market crash, I was exploring a couple that I would love to have in my rotation. One is the very cool sounding reverse iron condor, which is used to profit from significant moves around earnings announcements. When you think there�ll be a move either up or down, but are unsure of which way, this is the strategy to use. Another is deep in the money covered calls around ex-dividend days. The reason for my interest in these two strategies is that they are generally closed within just a couple of days, thereby minimizing market exposure. It�s, therefore, possible to increase returns while also reducing my exposure to the market movements. Sure, it�ll involve countless hours more of studying, but despite my mathematically challenged brain, it�s pretty fun. Imagine your back at school, and your Algebra 101 teacher tells you he�ll hand over a wad of cash if you work out the problem.

Key Trades:

swing trading options strategy Arkansas If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95.

, flooding. Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time. The beauty is you even earn extra income while doing it. I can best illustrate this with a real trade I recently closed (obviously cherry-picked):On Feb 12th this year, a week before the market started it�s COVID-19 free fall, the SMH Vaneck Semiconductor ETF was trading at $150. I sold a put option for March 6 expiry at $140 and received $100 of premium/income. Of course, the market tanked, and the trade was underwater.

best options trading analysis program Arkansas In the example above with the Semiconductor ETF, I decided to start a position in the name because I believe in the increasing demand for semiconductor chips in computers and smartphones globally.

I Made $30,000 in My First Year Trading Options, Here�s How$29,753. That�s my profit from trading stock options for a full year. Considering my annual living costs are around $40,000, that�s REAL money. My one-year-old is next to me, clapping his hands and drooling while standing in his walker. He�s PUMPED. I reward him with a tummy tickle and he laughs. In my previous life, my job was to trade stocks for large institutions. I did it for over ten years. It was pretty straight forward. I�d get lots of orders to buy shares, and I�d push the buttons to execute. I�d then get lots of orders to sell and would push a different set of buttons.

options trading wire newsletter Arkansas In a single day, a call or put can go down over 80%.

Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud.

options trading rules Arkansas While this kind of situation can arise for a variety of reasons, straddles are most often used when there is a significant event that is set to occur on or around a specific date.

Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless. If you continue to do your research, you will spot additional opportunities. That�s the skill part. Luck eventually follows hard work, but make sure you only nibble on options so your losses don�t have a disastrous affect on your portfolio. 7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change.

trading options training course Arkansas Although I was dying to put some trades on, I had to wait until I quit my job.

And when volatility is higher, the premium received for selling options increases, thereby allowing me to collect extra premium on each roll.

options trading advice Arkansas BUT my downside is protected as I can sell out of the same stocks at $90.

That�s why I recommend starting here. Covered calls give you a deeper perspective of what can happen to the value of options. In a single day, a call or put can go down over 80%. Similarly, they can quintuple in a single day depending on what happens to the company. An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day. And an option�s value can swing wildly within a few minutes depending on the price movement of the underlying stock. Nibble With Your Options BuysThe first time I bought options, I was extremely conservative. I bought a single Nikola put contract which did well. My logic for buying the put was that more evidence around Nikola�s fraudulent practices were emerging. I followed this stock for weeks before finally deciding to get started. I still buy Nikola puts to this day and will likely continue buying puts until the stock gets delisted.

short term options trading strategies Arkansas There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks.

Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price).

Key Theories:

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Article Outline

professional options trading course by online trading academy Arkansas The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options.

And I fantasized about making money from home instead. I read success stories of people starting a side hustle that allowed them to quit their job. I even knew a couple. But I couldn�t figure out what my side hustle superpower could be until I stumbled upon options trading. Trading options was something I considered for people with insane levels of intelligence. And unfortunately, that isn�t me. When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math. People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down. Discovering Stock OptionsI love reflecting on significant life changes you can pinpoint to a single event � that so-called fork in the road. In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression. He tried to explain the gist of it, but it was way over my head. All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night. And then I went back to my button-pushing existence the next day.

Critical Practices:

how does trading options work Arkansas Like most things in life, it�s daunting at first, but then you get the hang of it.

I read somewhere that the wealthiest individuals have seven separate streams of income.

options trading platform Arkansas But it was quick to recover and even hit new highs as the world needed more semiconductors to keep pace with their newfound love of gaming and tiger king.

After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time. The beauty is you even earn extra income while doing it. I can best illustrate this with a real trade I recently closed (obviously cherry-picked):On Feb 12th this year, a week before the market started it�s COVID-19 free fall, the SMH Vaneck Semiconductor ETF was trading at $150.

stock options trading alerts Arkansas , flooding.

What I mean is, there are endless combinations of strategies you can set up depending on your view of the market. If you think the market is trending higher, you�ll use one set of strategies. If you�re unsure of which way the stock will move, but think there�ll be a decent move in either direction, there are strategies for that. And if you think the market is in a downtrend, just use those strategies! And these strategies have some pretty cool names: iron condor, bull call spread, calendar straddle, and iron butterfly. Okay, so that all sounds fancy pancy, but what is an actual stock option?�Simply put, a stock option contract gives the holder the right to buy or sell a set number of shares for a pre-determined price over a defined time frame. �Investopedia. comIt�s pretty straight forward. You can think of it as an insurance policy. If you�re a portfolio manager, managing someone�s retirement money, then you may think its a good idea to protect your portfolio against a significant drop. If the S&P 500 is trading at around 3,000, then perhaps you�ll want to protect against a decline of more than 20%. This protection can be achieved by purchasing options contracts at the price of 2,400 (20% below the current market). What�s remarkable is that you or I can be the one selling the options contract in that example. All we need to do is place a sell order on an options exchange. What threw me off initially was learning how trading options for income is no different from being an insurance salesman. Many options traders consider themselves to be in the insurance industry. I was in awe as I read the book: The Option Traders Hedge Fund.

best options trading book for beginner Arkansas If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95.

For a guide on what to not do with options, check out the article below. The Riskiest Way To Invest In StocksThis strategy is entertaining to watch but extremely stressful to implementProtect Your Portfolio From Downside With PutsOne of the best ways to buy options is through hedging. If you own shares of a company and are nervous about the short-term outlook, you can buy a put to cap your losses. This strategy is great for a few key reasons:#1: You don�t panic sell or end up selling a stock you wish you held onto. This has happened to me a few times before buying options. #2: If the stock goes down, you can hold onto the shares and eventually sell the put. The put will shield you from most of your losses. #3: If the stock goes up, your put will lose value and eventually expire worthless, but it took off a lot of stress from your shoulders. You could focus on other things instead of worrying about the stock price or panic selling your shares. If the stock price isn�t likely to hit the strike price of your put, you can sell the put early to protect yourself from some of those losses. The protective put that attributed to most of my gains thus far was a protective Fastly put.

trading as a business options video course Arkansas Colleagues at work would ask about the �Options Trading For Dummies� book I had on my desk.

You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options.

tour s binary options trading course Arkansas The purchased options act as a form of insurance against major price changes, putting a ceiling on the potential losses from the trade.

In a single day, a call or put can go down over 80%.

udemy options trading basics 3 course bundle Arkansas That�s EXACTLY what this is.

Before the market crash, I was exploring a couple that I would love to have in my rotation.

Important Tactics:

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Thematic Study

options trading the hidden reality Arkansas He tried to explain the gist of it, but it was way over my head.

Setting out a further expiration date also increases your premiums.

Key Skills:

options trading course dallas Arkansas 66/share because of the protective put.

48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless. If you continue to do your research, you will spot additional opportunities. That�s the skill part. Luck eventually follows hard work, but make sure you only nibble on options so your losses don�t have a disastrous affect on your portfolio. 7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change. Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes. The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached. The downside to the bull call spread is, of course, that any potential upside beyond the projected price increase is limited due to the corresponding increase in the cost to cover the written call options. Bear Put SpreadA bear put spread is the exact opposite of a bull call spread, where the trader purchases put options and also sells the same number of put options with the same expiry date but a moderately lower strike price. The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless.

trading options reddit Arkansas BUT my downside is protected as I can sell out of the same stocks at $90.

What threw me off initially was learning how trading options for income is no different from being an insurance salesman. Many options traders consider themselves to be in the insurance industry. I was in awe as I read the book: The Option Traders Hedge Fund. The central premise from the author is how an options trader is a one-person insurance company, operating a solo business. The insurance business is summed up in a few bullet points:Calculating the risk for insurance policies soldReceiving adequate premiums for those insurance policiesPurchasing �re-insurance� to protect against tail-end risks like natural disasters, e. g. , flooding. Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance).

best options trading newsletter Arkansas I bought a single Nikola put contract which did well.

And unfortunately, that isn�t me. When I took the GMAT exams to apply for grad school, I scored in the top ten percentile for verbal (Yaaaay English Lit Class!) but the bottom ten for math. People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down. Discovering Stock OptionsI love reflecting on significant life changes you can pinpoint to a single event � that so-called fork in the road. In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy.

options trading picks Arkansas When I started this a year ago, my broker was paying me 1.

Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank.

options trading platforms Arkansas Meaning I only had $96k of capital at risk at any one time, rather than $186k.

Traders use the bear put spread when they want to bet on a moderate decline in the price of a security. The premiums gained from the written options help to offset any potential losses if the security fails to fall in price significantly, and they are added to the profits if the price falls within the window of the written options expiring without value. However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price. Option Strategies StraddleA straddle option strategies involves the purchase of call options and put options at the same strike price, usually the current price of the security, and the same expiration date. Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums. Option traders use the straddle options strategy when they are unsure about the direction of an upcoming price change, but are confident in the intensity of the price change.

online options trading Arkansas If you�re a portfolio manager, managing someone�s retirement money, then you may think its a good idea to protect your portfolio against a significant drop.

After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0.

trading options at expiration Arkansas This has happened to me a few times before buying options.

An index fund will never go down by 80% in a single day, but it will also never quintuple in a single day.

Unique Methods:

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Thematic Study

youtube options trading strategies Arkansas A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security.

People were shocked when they found I worked in finance. Not surprisingly, I didn�t end up applying for grad school�But I said f*ck it. I�m gonna see if I can learn this options trading thing. And a year after trying it out, I�ve made $29,753. Here�s how it all went down. Discovering Stock OptionsI love reflecting on significant life changes you can pinpoint to a single event � that so-called fork in the road. In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression. He tried to explain the gist of it, but it was way over my head. All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night. And then I went back to my button-pushing existence the next day. But this thing about options trading kept tugging at me in the back of my mind. I spent a few months reading up on it to understand some basic concepts. Once I felt I knew just enough to ask some not completely retarded questions, I emailed Suzy. For the next two years, I read through some pretty heavy and dry material while taking extensive notes. Colleagues at work would ask about the �Options Trading For Dummies� book I had on my desk. Although I started to understand some of the theories, I had trouble picturing them in action. Suzy admitted in our email exchanges how it�s one of those things that only makes sense once you start doing it. Unfortunately, when you work at a bank, the compliance department attempts to prevent you from doing anything meaningful with your life, including trading options. Yes, I may sound cynical, but I�m calling it how it is. Although I was dying to put some trades on, I had to wait until I quit my job. Which leads me to�The Joy of Pushing Buttons For MyselfTwo years after my catch-up with Suzy, I was officially unemployed. YESSSSSSSSSSSS!For the first time since I started in finance, I was free to log in to my brokerage account and trade whatever the hell I wanted.

Unique Practices:

spx options commodity trading advisor Arkansas I bought a single Nikola put contract which did well.

I had enough of pushing buttons for a living. And so I dedicated my time and effort, transforming my experiences into a side hustle that would provide personal and financial rewards. Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven. I�m gonna keep hustlin to see which of my skillsets I can leverage into income streams. You can do the same. �I�d rather hustle 24/7 than slave 9 to 5. �UnknownThat�s how I feel and maybe you do too. How I Made $5,000 Trading Options In Under 2 MonthsTips to get started and what to avoidYou can make far more money trading options than buying and holding onto stocks. You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options. However, options trading isn�t for the faint of heart. Just as you can make astronomical gains, you can also take on heavy losses if you don�t invest with the right approach. Success in options trading is a combination of skill and luck. Skill puts you in the position for massive gains and luck allows those massive gains to materialize under your timeline. In this article, I�ll talk about some of the trades I did, what to do, and what to avoid. Selling Covered Calls Is The Best Way To Get StartedFor a while, I resisted buying options because I saw it as gambling. And yes, you can buy options in a way that makes it pure gambling, but that doesn�t apply to all bought options (we�ll talk about buying options later). My introduction to options was selling them. When you sell options, you collect a premium rather than you paying up to buy the option. You become the seller rather than the buyer and get paid accordingly. Selling covered calls and cash secured puts has allowed me to earn returns that crush what I used to make back in my dividend investing days. I talked more about selling covered calls versus dividend investing in this article:Dividend Stocks VS Covered Calls For IncomeWhich one comes out on top?To set up a covered call, you need 100 shares of a stock. You then set a strike price for that covered call. The closer the strike price is to the current price, the more you�ll earn in premiums. Setting out a further expiration date also increases your premiums. The only catch is that you cap your short-term gains. While you can�t lose money with this strategy unless the value of the underlying stock decreases (same scenario as someone who buys and holds without selling covered calls), you do cap your upside. If you set a strike price of $20 and the stock goes up to $25, you have to sell your shares at $20 each rather than at $25 each. If you bought at $15, you still get some considerable upside, but you can miss out on additional gains. There isn�t a chance of losing all of your money with a covered call strategy if you use the strategy on good stocks.

options trading advice Arkansas The insurance business is summed up in a few bullet points:Calculating the risk for insurance policies soldReceiving adequate premiums for those insurance policiesPurchasing �re-insurance� to protect against tail-end risks like natural disasters, e.

Okay, so that all sounds fancy pancy, but what is an actual stock option?�Simply put, a stock option contract gives the holder the right to buy or sell a set number of shares for a pre-determined price over a defined time frame. �Investopedia. comIt�s pretty straight forward. You can think of it as an insurance policy. If you�re a portfolio manager, managing someone�s retirement money, then you may think its a good idea to protect your portfolio against a significant drop. If the S&P 500 is trading at around 3,000, then perhaps you�ll want to protect against a decline of more than 20%. This protection can be achieved by purchasing options contracts at the price of 2,400 (20% below the current market). What�s remarkable is that you or I can be the one selling the options contract in that example. All we need to do is place a sell order on an options exchange. What threw me off initially was learning how trading options for income is no different from being an insurance salesman. Many options traders consider themselves to be in the insurance industry.

options trading strategies pdf Arkansas Option Strategies StraddleA straddle option strategies involves the purchase of call options and put options at the same strike price, usually the current price of the security, and the same expiration date.

In this story, it was a chance meeting with my first boss in the financial industry. The guy that mentored and taught me how to trade stocks in the first place. For the purpose of this post, I�m going to refer to him as Suzy. While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression. He tried to explain the gist of it, but it was way over my head.

insider trading options Arkansas So let�s get into the weeds.

My $500 put turned into $3,083. 24 by the time I sold it which shielded my losses by $25. 82/share. So rather than losing $33. 48/share, I only lost $7. 66/share because of the protective put. In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares. The risk with selling shares is that the stock price can surge and you�ll miss out on the ride. Options Income Is Not ConsistentYou can maintain a consistent range selling covered calls and cash secured puts, but you�ll never make consistent income through buying options. Sometimes you can strike it big with one of your options while at other times most of them can expire worthless. If you continue to do your research, you will spot additional opportunities. That�s the skill part. Luck eventually follows hard work, but make sure you only nibble on options so your losses don�t have a disastrous affect on your portfolio. 7 Option Trading Strategies Every Trader Should KnowTrading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change. Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes. The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached. The downside to the bull call spread is, of course, that any potential upside beyond the projected price increase is limited due to the corresponding increase in the cost to cover the written call options. Bear Put SpreadA bear put spread is the exact opposite of a bull call spread, where the trader purchases put options and also sells the same number of put options with the same expiry date but a moderately lower strike price. The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless. Traders use the bear put spread when they want to bet on a moderate decline in the price of a security.

how much money can you make trading options Arkansas 6% for a total annual return of 16.

And so I dedicated my time and effort, transforming my experiences into a side hustle that would provide personal and financial rewards. Most importantly, outside of an office setting. I read somewhere that the wealthiest individuals have seven separate streams of income. Our household currently has four, and I plan on ramping that up to seven. I�m gonna keep hustlin to see which of my skillsets I can leverage into income streams. You can do the same. �I�d rather hustle 24/7 than slave 9 to 5. �UnknownThat�s how I feel and maybe you do too. How I Made $5,000 Trading Options In Under 2 MonthsTips to get started and what to avoidYou can make far more money trading options than buying and holding onto stocks. You can utilize options trading strategies that complement your portfolio, protect yourself from downside, or straight up gamble depending on how you utilize options. However, options trading isn�t for the faint of heart.

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Out of the many advanced trading techniques used by option traders, there are 7 strategies that stand out above the rest:Long Call and PutsBull Call SpreadBear Put SpreadStraddleStrangleButterflyCovered CallThese top 7 option strategies should be a mainstay of every option trader�s playbook, and they should understand their application intimately. Long Call and Long Put Option StrategiesLong calls and long puts are simply positions taken in an underlying security using options instead of the actual security. A long call uses call options to bet on an increase in the price of the underlying security, while a long put uses put options to bet on a decrease in the price of the underlying security. Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change. Because options cost only a small premium compared to the potential increase in their value as a result of large changes in the price of the underlying security, the long calls and puts are the best technique for maximizing profits in the relatively rare cases where a trader has such confidence in forecasting upcoming price changes. The risk of long calls and long puts is that the price fails to move far enough in the right direction, and the options expire worthless or fail to cover the full cost of the premiums, resulting in a trading loss on the position. Bull Call SpreadA bull call spread involves the purchase of call options at one strike price and the writing of the same number of call options with the same expiration date but a moderately higher strike price. The profit from a bull call spread is maximized when the price of the security reaches slightly under the strike price of the written options, so that the written options expire worthless while the purchased options can be exercised for the maximum value within the window of the written options expiring worthless. The downside in a bull call spread is protected when both options expire worthless, but the premium gained from the written options helps to reduce the loss from the premium paid for the purchased options. Bull call spreads are used when a trader has confidence in the direction of an upcoming price change, but not in its intensity. If a trader foresees only a small increase in the price of a security, then they can capitalize on that small increase by purchasing call options while also limiting any potential downside and reducing the cost of the premiums paid by writing options at a higher strike price that is unlikely to be reached.

automated options trading Arkansas It�s, therefore, possible to increase returns while also reducing my exposure to the market movements.

This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0. 2 I paid for re-insurance). Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much. If you put on ten such trades, each with a 90% probability of profit, then you can expect nine of them to close profitably with just one being unprofitable. The icing on the cake is that it�s not the end of the story for that one trade that didn�t work out. There�s a lot you can do to �repair� and make it profitable once again. One of the main concepts in trading options is �rolling,� and it�s something I had to learn when the market dropped significantly enough to put most of my trades underwater, just a month into trading. All rolling means is pushing forward the period of the options expiration date further out in time. You achieve this by buying back the options contract you sold and then selling another contract in the same name, further out in time.

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best stocks for options trading 2020 Arkansas It�s, therefore, possible to increase returns while also reducing my exposure to the market movements.

Which is somewhat the approach I�m taking.

Important Thoughts:

trading earnings with options Arkansas Before the market crash, I was exploring a couple that I would love to have in my rotation.

While at work one day, Suzy reached out, saying he was in Hong Kong with his family (where I was working at the time) and wanted to catch up for a beer. I had completely lost touch with him ever since he left the industry a few years prior to this meeting. I was both excited and curious to see what he was up to. After the usual formalities and a beer in, I asked him. He responded by saying, �I trade options for a living. �I was confused. My face resembled a deer in headlights doing a Derek Zoolander impression. He tried to explain the gist of it, but it was way over my head. All I could think of were the words �I trade options for a living� as I furrowed my eyebrows for the rest of the night. And then I went back to my button-pushing existence the next day. But this thing about options trading kept tugging at me in the back of my mind. I spent a few months reading up on it to understand some basic concepts. Once I felt I knew just enough to ask some not completely retarded questions, I emailed Suzy. For the next two years, I read through some pretty heavy and dry material while taking extensive notes. Colleagues at work would ask about the �Options Trading For Dummies� book I had on my desk. Although I started to understand some of the theories, I had trouble picturing them in action. Suzy admitted in our email exchanges how it�s one of those things that only makes sense once you start doing it. Unfortunately, when you work at a bank, the compliance department attempts to prevent you from doing anything meaningful with your life, including trading options. Yes, I may sound cynical, but I�m calling it how it is. Although I was dying to put some trades on, I had to wait until I quit my job. Which leads me to�The Joy of Pushing Buttons For MyselfTwo years after my catch-up with Suzy, I was officially unemployed. YESSSSSSSSSSSS!For the first time since I started in finance, I was free to log in to my brokerage account and trade whatever the hell I wanted. �Damn it feels good to be a gangsta�Geto BoysIt was now time to grow a pair and start trading options. I had signed up for a newsletter that Suzy suggested, which provides regular trade ideas. That was perfect as it provided a framework to follow. Man, was it was exciting.

crash course in options trading Arkansas There are a variety of risky options trading strategies such as buying an option on its expiration date that can quickly deplete your money.

I used to have to make manual trade confirmations at work. Now I do it to record my profits!I feel like a kid counting pennies added to his piggy bank. Except this one pays to feed my family!That said, the more you learn, the more you realize how little you know. And that�s how I feel right now. Rather than patting myself on the back for profiting this past year, I feel hesitant to be proud. I realize how little I know and that I�m merely scratching the surface of the knowledge I need to feel fully confident in trading options for a living. And also how much more I need to hit the books. In terms of specific actions I need to take, they mainly involve expanding my arsenal of trading strategies. Before the market crash, I was exploring a couple that I would love to have in my rotation. One is the very cool sounding reverse iron condor, which is used to profit from significant moves around earnings announcements. When you think there�ll be a move either up or down, but are unsure of which way, this is the strategy to use.

options trading gorilla picks Arkansas Which is somewhat the approach I�m taking.

#3: If the stock goes up, your put will lose value and eventually expire worthless, but it took off a lot of stress from your shoulders.

commodities options trading course online Arkansas Option traders use these simple strategies when they are confident in the direction and intensity of an upcoming price change.

In past scenarios I�d likely panic and sell a bunch of my shares, but the protective put allows me to reduce risk without selling shares.

bill poulos options trading course Arkansas Unlike trading stocks where you need the price to go up to profit, I make money if the stock price rises, stays the same, or goes lower by not too much.

6% for a total annual return of 16. 4%What�s worth noting is, even though my average capital at risk was $186,000/month, my trade duration was, on average less than two weeks. Meaning I only had $96k of capital at risk at any one time, rather than $186k. I would close the existing trades before entering the new trades, and thus, recycle the same capital. Why is that important?Because it doubles my return to 32. 8% instead of 16.

options trading training course Arkansas And if you think the market is in a downtrend, just use those strategies!

The profit from a bear put spread is maximized when the price of the underlying security reaches slightly above the strike price of the written put options, which means that the written options expire worthless while the value of the purchased options is maximized within the window of the written options expiring without value. The downside to a bear put spread is limited to the premium paid for the purchased options less the premium gained from the written options, which occurs when both of the options expire worthless. Traders use the bear put spread when they want to bet on a moderate decline in the price of a security. The premiums gained from the written options help to offset any potential losses if the security fails to fall in price significantly, and they are added to the profits if the price falls within the window of the written options expiring without value. However, the upside to a bear put spread is limited by the cost of the written options increasing as the security continues to fall in value past the written put options� strike price. Option Strategies StraddleA straddle option strategies involves the purchase of call options and put options at the same strike price, usually the current price of the security, and the same expiration date. Long StraddleA straddle option trade will profit when the price of the security changes enough in either direction to compensate for the cost of both the call options� and put options� premiums. Option traders use the straddle options strategy when they are unsure about the direction of an upcoming price change, but are confident in the intensity of the price change. While this kind of situation can arise for a variety of reasons, straddles are most often used when there is a significant event that is set to occur on or around a specific date. Press conferences and news releases are common events where traders expect significant price changes, but are not confident about the direction of the price change. Straddles can offer relatively low cost access to substantial profits with little downside risk, which is merely that the price change is not significant enough to cover the cost of both premiums.

weekly options trading service Arkansas 4% return means.

You can think of it as an insurance policy. If you�re a portfolio manager, managing someone�s retirement money, then you may think its a good idea to protect your portfolio against a significant drop. If the S&P 500 is trading at around 3,000, then perhaps you�ll want to protect against a decline of more than 20%. This protection can be achieved by purchasing options contracts at the price of 2,400 (20% below the current market). What�s remarkable is that you or I can be the one selling the options contract in that example. All we need to do is place a sell order on an options exchange. What threw me off initially was learning how trading options for income is no different from being an insurance salesman. Many options traders consider themselves to be in the insurance industry. I was in awe as I read the book: The Option Traders Hedge Fund. The central premise from the author is how an options trader is a one-person insurance company, operating a solo business. The insurance business is summed up in a few bullet points:Calculating the risk for insurance policies soldReceiving adequate premiums for those insurance policiesPurchasing �re-insurance� to protect against tail-end risks like natural disasters, e. g. , flooding. Investing the cash pile accumulated from selling the insuranceAnd this is precisely what an options trader does. So let�s get into the weeds. Diving Into the DetailsOptions, like insurance policies, have a contract period. They can range anywhere from a week to multiple years until the policy expires. The reality, though, is that over 90% of options contracts expire worthlessly. The way to make a consistent income is to be selling the options contracts rather than buying them. The strategy that has become the bread and butter of what I do is called a credit put spread. In a nutshell, I sell the holder of a stock an insurance policy to allow him to sell me his shares slightly below the current market price (called a �put option�), in case the stock price plummets. I then use a small portion of that premium received to buy a re-insurance policy for myself to sell out of those shares at an even lower price. It�s easiest to understand via an example:The price of Nike stock is US$ 100. I sell a short-term, two-week insurance policy to a holder of Nike shares to protect his investment at $95 (5% below the current price). If the share price of Nike falls below $95 during this period, he can sell his shares to me at the agreed price of $95. In this example, he has paid me $1 for this insurance. I might then go out and buy a re-insurance policy for $0. 2 and protect myself at $90 (10% below the market). This way, if the share price tanks 20%, then I had to buy the shares at $95. BUT my downside is protected as I can sell out of the same stocks at $90. After the two weeks, if the insurance policies all expire worthless because the Nike share price is still above $95, then I�ve made 80cents ($1 I received initially, minus the $0.

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