Question about Monthly Income Trading
January 28, 2010 by admin
Filed under Frequently Asked Questions, Options, Stock Trading, The Greeks
Q: I have read the special report and if I’m interpreting it correctly we have been in a low volatility environment for the past few months, but appear to be entering a period of increased volatility. So put debit spreads seem to be in order along with vertical call spreads for credit at areas of [...]
Question about buying calls – synthetic stock
January 27, 2010 by admin
Filed under Frequently Asked Questions, Options, Stock Trading
Q: I was playing around with SDS and noticed something interesting.
If I buy a call (and not sell a put) I am limiting my loss to the premium paid yet am able to participate in unlimited gain. This way I don’t have to mess with buying the actual stock to set a stop.
I guess I [...]
Question about Selling Puts
January 26, 2010 by admin
Filed under Frequently Asked Questions, Options
Q: With the selling of Puts, do we have to worry about assignments?
A: If they are out-of-the-money they will never be assigned.
When the option is in-the-money AND is the front month option AND has less then .25 cents of extrinsic value then be cautious. Ex-dividend dates increase your chances of being assigned
Click Here for Your [...]
Options Trading Questions
December 15, 2009 by admin
Filed under Double Calendars, Frequently Asked Questions, Iron Condors, Options, Theta Scalping
1) I understand that you initiate your positions 30-40 days prior to expiration but you also talk in your videos about adding to your positions. Are you referring to adjustments that may become necessary due to a breakeven being threatened? If not, could you explain?
ANS: I only add to positions to increase my profits and [...]
Iron Condor Questions
December 14, 2009 by admin
Filed under Double Calendars, Frequently Asked Questions, Iron Condors, Options
1. When it is best to put an Iron Condor and when it is best to put a Double Calendar? Is there any circumstance that favors one or other strategy?
ANS: Please see the Market Report 11-22-08. If you are not yet a member, get 30-Day Trial for under $10 today!
2. On the SPY Iron Condor [...]
Victory spreads and volatility
November 25, 2009 by admin
Filed under Double Calendars, Frequently Asked Questions, Iron Condors, Options, Victory Spreads
Q: So far so good on my first month of condors…..2 weeks in….still delta neutral. Haven’t had to adjust yet…..but ready to if threatened.
I want to try the back-ratio type of trade to protect against a huge downstroke in January, but for the life of me I cannot get the analysis chart to look like [...]
How to build calendars
October 12, 2009 by admin
Filed under Double Calendars, Frequently Asked Questions, Options
Q: As I build my profit expiration tent i tend to like and use calendars. So thinking nov dec spy I saw that there is very small difference buying a 107 calendar call (sell nov buy dec)versus a 107 calendar put. Am i crazy? or is it ok say to do 107 105 103…etc all [...]
Front month and back month in options trading
October 8, 2009 by admin
Filed under Frequently Asked Questions, Options, The Greeks, Training Videos
Q: A couple of weeks ago I purchased the Trading Pro System and also subscribed to the Daily Market Advantage.
You have provided an unbelievable resource and I am still working on paper trading and learning the adjustments on the iron condors and Calendar spreads. It is very interesting information.
I have watched the video on the [...]
Closing position with synthetic options
October 8, 2009 by admin
Filed under Double Calendars, Frequently Asked Questions, Iron Condors, Options
Q: Thanks for the detailed video.
One quick question regarding yesterday’s video. You showed how to close the postion with synthetic options. Now, When we close the sell postion (in this case SPY call sell) by buying the SPY call, do we need to sell that as well? SPY call bought needs to be sold [...]
3 Legged Box question
October 5, 2009 by admin
Filed under Frequently Asked Questions, Options, Three Legged Box
Q: I have a 3 leg box trade on SRS. Since the market has turned do you take the bearish leg off and let the call side run or leave the trade intact.
I bought Dece so I can let it go for a while.
A: I keep it on until the option I sold as part [...]
