Flauwe Dinsdag, Vaste Week

Flauwe Dinsdag, Vaste Week

A little Dutch to start our Tuesday (the picture is of a canal I used to live on in Amsterdam). What the title of today’s column means in English is, “Weak Tuesday, strong week”, an old Dutch stock market saying. With the market down this morning...
What is the Skew?

What is the Skew?

One of the problems I have writing this stuff is that I don’t want to be too complex for readers who have a limited knowledge of the market and options and on the other hand not be too simple for those who do know. It’s a fine line which is why I welcome...
Let’s Review the Six Elements

Let’s Review the Six Elements

Today I’d like to review the six elements of option pricing. Because, really, that’s all there are. I have gone into detail before about each of these elements and will again, but for today I am simply going to list them. Intrinsic Value How much is the...
Just Sayin’…

Just Sayin’…

It occurred to me that perhaps I should post a reminder of what this column, indeed this whole site, is all about. And that is options education and not financial advice. Not only am I not a licensed financial adviser, I don’t want to be in the advice business....
Zen and the Art of Trade Maintenance

Zen and the Art of Trade Maintenance

Actually, I don’t know anything about Zen. But I do know quite a bit about trading and managing one’s trades. Besides, one of my all time favorite books is Zen and the Art of Motorcycle Maintenance. So, please forgive the overly cute title of today’s column. It is a...
Covered Write = Naked Short Put

Covered Write = Naked Short Put

Today I am going to talk about what is probably the simplest and best known options strategy there is and why so many so called advisers out there get it wrong. Namely, the covered call, ie, buy the stock, sell the call (also known as a covered write). What is your...