I did mention about the important of trade adjustment or repair in the previous posts when we trade options. Let me kick start the first method in this post!
It is always easier to illustrate via an example. Let’s assume we have a Bull Put Credit Spread that consists of 2 options trade as per below:-
1. STO SPY 195 PUT strike, Jan wk5 2016, 39 DTE, premium $3.3
2. BTO SPY 190 PUT strike, Jan wk5 2016, 39 DTE, premium $2.1
I am boosting up my web developing skill now in order to roll out my options website in Jan 2016. I feel great to return to the coding world after so many years.
I will continue to blog and I will integrate the two (my blog and my website) to create more value to the readers.
May the force be with me 🙂
DOW Jones and S&P dropped two consecutive days post rate hike last Wednesday. I will monitor Monday’s S&P 500 Index Futures (/ES) before market open to decide if I will proceed to initiate a Bull Put Credit Spread against S&P500 ETF (SPY). My view is that the SPY has a high probability of trading range-bound/consolidation between 195 to 215 in the next 1 or 2 months. Hence, I am keen to construct the following trade after the market open tomorrow:-
Considering we have chosen Bear Call Credit Spread (bearish outlook and we expect the stock price to drop) as a strategy that we intend to deploy, we may need to choose a pair of strikes. Continue reading “Options Strategy – Bear Call Credit Spread – Strike selection”
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”
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!
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)”
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?”
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?”
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”
Lifestyle Options Trader 