Posts Tagged ‘Credit Spreads’

Option Credit Spreads – Limited Risk With Limited Profit

I started trading options in the late 90’s. After selling my first option and collecting an immediate credit I and became an option seller for life. I became a student of option selling strategies and started selling covered calls on stocks I brought and owned. I was doing OK collecting premiums month after month until [...]

Option Credit Spread Trading – Limited Risk with Limited Profit

I started trading options in the late 90’s. After selling my first option and collecting an immediate credit I and became an option seller for life. I became a student of option selling strategies and started selling covered calls on stocks I brought and owned. I was doing OK collecting premiums month after month until [...]

Options Trading Strategies – Treat Implied Volatility of Calls Separate From the IV of Puts

The Implied Volatility (IV) of Calls needs separate treatment from the IV of Puts. Also, for specific options trading strategies treat the IV of both Puts and Calls as a combined bundle.Each option at each strike implies its own individual percentage value of the underlying product’s future volatility. This makes it unique from any other [...]

Options Trading Strategies – Book Review – Guy Cohen, The Bible of Options Strategies

Most trading literature on option strategies tend to lean towards mathematical formulas to define the construction of a spread.  Guy Cohen has chosen to use pictorial logic, even with the Greeks unique to a particular strategy, to piece together the legs of a spread with diagrams.Diagrams that connect with each other are a much more [...]