Options

Options investing is a field that most people do not know about. I am currently involved in selling naked puts and covered calls, but I hope to cover advanced options strategies eventually.  Options trading and investing has to do with taking a position that a particular stock may go up, down or stay the same which makes the contracts very versatile.

Options Strategy – Understanding the Strangle

It has been over a month since I taught myself a new options strategy.  Unacceptable.  This year I have researched and written about bull put spreads and the straddle.  I have implemented the bull put spread, but have yet to implement a straddle.  Well, next on my list the strangle. If you are brand new to options, or do not have the basics down you are going to want to check out my basic post on the call and put. What is a Strangle Options Contract? A strangle options contract is when you buy/sell a call and a put with the same [...]

By |2017-04-11T00:06:50-04:00April 11th, 2017|Options|2 Comments

Options Strategy – Understanding the Straddle

There are a ton of different options trading strategies out there, and I am attempting to learn one at a time.   I am learning while I am writing.  If I can’t explain it with some sense of clarity then I don’t understand it myself and I either need to spend more time on the topic or I should stay away from the strategy. The last strategy I took a look at was the Bull Put Spread.  Since learning and writing about it I have actually sold two or three contracts in the first week after teaching myself the technique! I doubt [...]

By |2017-03-06T11:41:14-04:00March 6th, 2017|Options|0 Comments

Option Strategy – Understanding the Bull Put Spread

I have been selling a lot of naked puts this year.  A lot.  Taking a look at my spreadsheet I would estimate that just 2 months deep I have been in and out of 50 or so trades.  If I had to guess that is a tremendous amount of trading for a retail investor (but maybe I am wrong).  Since options trading is currently what I am obsessed with I have been reading and thinking about the topic at an increased rate, and the more I read the deeper the rabbit hole gets.  There are a ton of strategies out there, so [...]

By |2017-02-26T23:34:31-04:00February 27th, 2017|Options|3 Comments

Rolling Option When You May be Assigned a Naked Put

I have become semi-obsessed with options and the income they can generate since I first learned how to sell naked puts.  However, selling naked short puts has risk and one of those risks is being assigned the stock you "bet" against.  There are are two main strategies that everything else builds off of.  The first is just taking the stock; I took this route with my Under Amour trade.  The second is known as rolling. What Does it Mean to Sell a Naked Put? Discussing an option "out" of a unprofitable trade means nothing if you don't understand the underlying trade itself.  [...]

By |2016-12-21T10:19:45-04:00December 21st, 2016|Options|1 Comment

What is Time Decay and Why Do I Love It?

I know I have been writing about options a lot lately, but currently that is the shiny object that has all my attention when it comes to investing and creating wealth. When I sell a naked put I collect a premium to take the risk that someone can put to me 100 shares of a particular stock if it goes below the predefined strike price by a certain expiration.  Time decay (also known as Theta) is an option seller's friend, and let's take a look why. Breaking Down a Put Sale Example I always find an example is the best way to explain options Stock is worth [...]

By |2016-12-08T15:09:07-04:00December 9th, 2016|Options|2 Comments