Beta Weighting Explained

What is Beta Weighting & Why You Should Use It

Beta weighting is a fundamental risk management technique that is commonplace in every professional trading institution. But sadly, many retail traders shy away from it because, at first glance, it does seem complicated. My goal with this article is to change this. There is a reason why so many professional traders use beta weighting on a daily basis! After reading this article, you should be able to fully understand this reason and apply beta weighting Read more

Options Assignment

What is Options Assignment & How to Avoid It

If you are learning about options, assignment might seem like a scary topic. In this article, you will learn why it really isn’t. I will break down the entire options assignment process step by step and show you when you might be assigned, how to minimize the risk of being assigned, and what to do if you are assigned. Video Breakdown of Options Assignment Check out the following video in which I explain everything you Read more

Probability Distribution Of Stocks

The TRUE Probability Distribution of Stock Market Returns

The goal of a trader is to best possibly position him/herself to maximize their chances of winning. To do this, it is crucial that you as a trader understand the underlying probability distributions of stock market returns. Without having a good understanding of price distributions, you might base your entire trading approach on completely flawed assumptions. This can have detrimental consequences and is one reason for financial crashes and crises. The purpose of this article Read more

options adjustment strategies

Options Adjustment Strategies

When trading, things sometimes don’t turn out to go entirely according to your plan. But what do you do if this happens? Do you sit tight and wait, close the trade or do something else? In this article, you will learn about a few options adjustment strategies that will help you deal with struggling options trades. These adjustment techniques will help you minimize your risk without eliminating the potential for profit. General Adjustment Guidelines Before Read more

The Strategy Lab

Introducing: The Strategy Lab

I have a question for you. Please try to answer it as honestly as you can: How Well Do You Understand Options Pricing And Options Strategies? To help you answer this question, I have prepared three statements. Make sure to read them and then consider to what extent you agree with them: I know more than 8 different options strategies and their basic payoff behavior. (Agree/Disagree) I know what the Greeks are and how to Read more

scale in to a trade

Why You Should Always Scale in to Trades!

Scaling in and out of trades can be a real game changer when it comes to consistently profitable trading. No matter if you trade stocks, options, futures, forex or whatever, if you are currently entering and exiting your trades in one step, you are making trading much harder for yourself. In this article, you won’t only learn what scaling in and out of trades is. You will also learn why and how you should scale Read more

why bull markets suck

3 Reasons Why Bull Markets Suck!

Even though most people think there isn’t anything better than a raging bull market, bull markets have some disadvantages as well. At the time of writing this, we have had a strong bull market for almost a decade. Therefore, most people have gotten used to this bull market and its traits. Due to this, even relatively small 1% down-moves scare many investors because they just aren’t used to this anymore. Such an attitude can be Read more

complete entry and exit guide

Complete Entry and Exit Guide

Getting entries (and exits) right is one of the most important things when it comes to options trading or trading in general. Even with the best adjustment techniques, you won’t be able to make back what you lost from a bad entry. Therefore, your focus should lie on making the best possible entries. This can’t be said often enough. In the following article, I will walk you through everything you need to know about opening Read more