Trading Options on Earnings – A Step By Step Guide

Trading through earnings announcements usually isn’t a good idea. During earnings, most stocks tend to either increase or decrease significantly in value. Predicting the correct direction isn’t more than a 50/50 bet. That’s why I can’t recommend trading stocks through earnings announcements. With options, however, you have many more possibilities. Options allow you to profit from an entirely different angle. I will present a way that will allow you to profit from trading options on earnings.  To fully understand Read more

undefined vs defined risk option strategies

Undefined Vs. Defined Risk Option Strategies

When people hear of undefined vs defined risk option strategies most people just think of limited vs unlimited risk and nothing more. In this comparison, most people think a limited risk trade is an obvious choice. But actually, there are many more factors that should impact that decision. Sadly, most people don’t know these factors. In this article, I will break down all the differences between undefined and defined risk option strategies. To visualize the differences Read more

how to trade options in a small account

Options Trading In A Small Account – My Experience

Originally, this article was for one of my live (option) trade case studies. But after writing around 1000 words about flaws in my strategy in small accounts, I realized that this would be a great article for people with smaller accounts. All my live trade examples/case studies are done inside of a very small ($1500-$2000) Tastyworks broker account. In the beginning, this was to show that it is possible to make money with options in Read more

iq options

Is Trading Binary Options a Scam – My Honest Opinion

Binary Options are a special kind of exotic option. They have been around for quite a while. I own a derivative trading book published in 1989 and it already has a short entry about binary options. But somehow binary options have gained extremely much popularity in the past few years. Many people even think that binary options are the way to make a lot of easy money all within a few hours. This is because of Read more

black swan event

Portfolio Protection with Options and Hedging Strategies using Options

When talking options most people first think of options as protection or hedges for other positions or even an entire portfolio. Options can be used in different ways to hedge/protect against black swan events like big market drops or crises. I will be presenting two possible hedge strategies and their effectiveness. The following best option hedging strategies are good to protect positions against black swan events (Market crashes) or just big moves down. Protective Put Option Read more