If you can understand the title you're approved to continue reading this article by AJ Brown from TradingTrainer.com. AJ is really one of the only guys I know who can make something like OTM Near-Term Vertical Debit Spreads an easy topic to understand and execute! Read the below article and also be sure and get AJ's Options Trading Courses as I made him promise to give it to Trader's Blog readers for free! He told me he was impressed with Trader's Blog readers and really wants you to ask him some tough questions...don't let him down!
If you open and close too many positions in a single week, you will be tagged as a pattern day trader and forced to comply with a set of complex and onerous rules.
To reduce our exposure, increase our probability of making a profitable trade, and avoid being flagged as a pattern day trader, we’ve been using out-of-the-money near-term vertical debit spreads. What this means is that we’ve been leaving our positions open overnight instead of closing them intraday.
A vertical debit spread is like a cheap insurance policy to protect you in case a stock gaps up or down.
Here’s how it works…
Continue reading "OTM Near-Term Vertical Debit Spreads"
Today I've invited Bec from MarketMum.com to come and show everyone what she's been using to trade options in this market. I've been reading her for a while, and I was finally able to contact her so she can teach us men a thing or two! So please enjoy the article and feel free to comment with your own thoughts and opinions!
A big thanks to Adam for choosing me to be a guest blogger on his site, I feel very honoured! Before we get into the details of my latest strategy, I think I should introduce myself a little better and tell you about myself.
My name is Bec and I'm a stay at home mum from Australia. I was introduced to trading in November 2005 and was hooked from the get go. After some success and many failures, I decided to set up a website for others out there like me, who needed information and education on how trading worked, but more importantly, see how someone else was trading the market, real-time! So I decided to place my trading diary online and thus MarketMum.com was born! I have since written a couple of ebooks and produced a charting video home study, as I was tired of the enormous prices that some so called "experts" charged to learn
Continue reading "New take on a Strangle"