Introducing Option Strategies

This is the option chain

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Pictorial representation of the option strategy (label)

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Options Chains

It is very important to understand the options chain and let’s deep dive into few of the important information that we can gather from this options chain.

1. AAPL – this is a ticker, represents the stock that we are keen to trade

2. Last Price of the AAPL – it shows $95.42, the price that AAPL stock is traded at the time of snapshot.

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Options Strategy – Bear Call Credit Spread

In the previous post, we discussed Bull Put Credit Spread.  In this post, let’s decompose and explain Bear Call Credit Spread using Lifestyle Options Trader’s method.

Bear Call Credit Spread (BCCS)
1. Bear -> Bearish Outlook
2. Call -> Call Options
3. Credit -> Receive premium Continue reading “Options Strategy – Bear Call Credit Spread”

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)”

Options fundamental – continue …

~If there is one thing we should wish for our children, it is to become an optimist. If there is one thing we should teach our children, it should be trading/investing.~
The first phrase is quoted by Daniel Kahneman, while the 2nd phrase is by me :). Trading/investing is both art and science which can benefit us whole-life if we do it correctly, be it a profession or a hobby.

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Options Greek demystified..

When we trade options, we cannot and should not ignore the important of Options Greek. Options Greek is like dashboard in your car. In car dashboard, there are speedometer, odometer, fuel gauge etc. These indicators enable the driver to control the car and drive smoothly. Ignoring the Options Greek in trading options Continue reading “Options Greek demystified..”