Option Trading Tips

These articles with some really good option trading tips are provided here free of charge by some heavy weight experts in the options business. Some are articles, some are videos. I have picked the ones that I believe you will find most useful. Some of them refer to strategies that I have not used very much, and so those that I post here can help you broaden your knowledge about options trading.

Why Great Stocks Drop Hard and Reverse

July 15, 2013

A stock may have excellent fundamentals, and be set in a good trend with stock growth - when suddenly an unexplained reversal takes place, eating into your patiently earned profits. This is often caused by institutional selling or profit taking, and is most often triggered by a 'bot' or trading robot. Here is an article that shows what happens and what to do about it. Click here for all the details.

How to Trade Options Around Company Earnings

January 22, 2013

As earnings approach, it is very normal to have an increase in implied volatility for options. This makes for a slight increase in risk, but it also leads to better options prices, which means more profit - if you trade well! This voltility typically decreases again after earnings. Using a strategy such as a short strangle over an earnings date can take advantage of this pattern and yield a respectable profit. Here is an article that describes a recent trade on EBAY using exactly this method. Click here for all the details.

Using a Triple Calendar Spread to Trade Google Earnings

October 17, 2012
This article about calendar spreads is time specific for a particular event, but you can use the principles here to trade in any earning season. I would not normally trade when there is an impending earnings report, especially using a directional trade such as credit spreads. However, here is a strategy that is profitable over a wide range of prices, and is not affected by the direction that a stock may take after earning are announced. You can read the full details, with plenty of graphical illustrations, by clicking here.

Calendar Spread

The Simple Truth about Trends

May 16, 2012
Identifiying a trend in the market, especially inthe volatile (and profitable) E-minis is easy. Using that information to trade and build wealth, is less easy. In particular, knowing when the trend is about to reverse and when to exit your trade is critcal to your trading success. You can watch a free video about this by clicking here.

Six Things Consistently Successful Traders have in Common

Jan 4, 2012 by Todd Mitchell
Developing a trading plan, having the discipline to control your emotions and stick to the plan, are all part of a trader's success. This short video talks you through the essential basic elements that every traders should be doing in order to be successful. To watch the video, click here.

Lack of Energy taking a bite out of AAPL?

April 16, 2012 by Doc Seversen
The market seems to be in a correction, which has been long expected after a significant upwards run. This could be the setup for further progress, or it could be the sign of a market reversal. Could AAPL be affected by the same pattern? To watch Doc Seversen's 5 minute market assessment, click here.

How to Exit an Option Trade

Getting into an option trade is easy. Getting out at the right time, in the right way, is not always so easy. This short article gives you the principles you need to know. Read it here.

How to use Options for your Benefit

A summary of the different options strategies, and how you can use them to protect yourself from market declines, to make profit in a dead duck market, or to profit from an upwards trend. Read the full article here.

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  • What is the definition of an 'Expert'? Well, and 'Ex' is a 'has-been', and a 'spurt' is a drip under pressure! Fortunately, these experts really know their game, and provide some pretty good option trading tips to help you sharpen your trading plan. Many of them I have posted in response to questions that people regularly ask me by email.