Options and Liquidity

Options and Liquidity

I wanted to write today about something that I have stressed in the past, and that is the importance of trading options that have liquidity. Liquidity means that the underlying value can be easily bought or sold and has a tight bid/offer spread. Then I came across an...
Time to Review the Six Elements

Time to Review the Six Elements

A lot of what I do in my teaching is to simplify and demystify exchange traded options. It’s literally not rocket science. Oh, you can find as many complicated mathematical formulas explaining options as you’d like. I doubt any of that helps the average home investor...
Special Edition

Special Edition

I almost never (well sometimes) venture into political stuff. But… I have been censored. I have written many options articles for Futures Magazine (now Modern Trader) over the years and aside from some good editing have never had an article yanked for content....
What Is Pin Risk?

What Is Pin Risk?

With the October expiration happening on Friday I thought I’d help prepare my loyal readers by talking about Pin Risk. One of the reasons I strongly recommend that private investors unwind their positions prior to expiration is that trading the expiration can be very,...
Caveat Emptor

Caveat Emptor

We all know that is Latin for ‘Let the buyer beware”. It certainly applies to the stock market so far in this new year. It also applies to financial advice and education. If you are ever promised guaranteed returns, run, do not walk, away. Such a guarantee is flat out...
End of Holiday Reminders

End of Holiday Reminders

  Tonight begins Yom Kippur which carries on through sunset Wednesday. As the high holy time ends I thought that I would simply post some reminders for anyone who trades, invests, or is interested in the stock market. 1. Bulls make money. Bears make money. Pigs...