I came across this book and a quick flipped through suggest my earlier post of using options to enhance yields and protect gains of value stocks are aligned with the core idea of this book. I will complete it by next week and update great points in this blog!
Month: December 2015
Entering Options Strategy (Bull Put Credit Spread)
A lot of friends approached me and asked what is the best options strategy to deploy if he/she intend to start trading options with USD5k-10k capital? My answer is trading credit spread (bull spread or bear spread or combination of both). Trading credit spread is entirely different from few strategies that I shared in my earlier post. There is no concept Continue reading “Entering Options Strategy (Bull Put Credit Spread)”
Is it possible to create a trade that will never lose?
The answer is yes with the help of options! While buying options can protect a stock (see here), buying options can also lock-in a profitable position to ensure the position will never lose.
Let say we purchase Apple stock at Continue reading “Is it possible to create a trade that will never lose?”
Insurance is important to us, how about insurance for our stocks/portfolio?
Buying options to protect a stock is like buying insurance to protect ourselves. Options is very similar to insurance. When we buy an options, we are acting as the insurance policy owner. We pay premium to the insurance company Continue reading “Insurance is important to us, how about insurance for our stocks/portfolio?”
Few thoughts on options trading through Q&A
Let me share the conversation between my friend and I. Enjoy reading!
Q: Why you choose the name Lifestyle Options Trader?
Lifestyle Options Trader (LOT): Trading can be stressful. I used to burn late night oil (due to time Continue reading “Few thoughts on options trading through Q&A”
Portfolio Management
If I were to name the two most important criteria to become a successful options trader, I would pick managing portfolio and managing risk. The ultimate goal to trade options is to stay in the game and to make money consistently. In order to stay in Continue reading “Portfolio Management”