Options Trading
The first—and perhaps biggest—challenge of options trading is understanding what an option is.
An option is a contract giving you the right, but not the obligation, to buy or sell a specific security at a specific price over a specific period of time. After that period of time has elapsed (known as “expiration day”), the option ceases to exist.
A call option gives you the right to buy the security.
A put option gives you the right to sell the security.
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Options Trading Post Archives
Using my unusual option activity scanner to identify how sophisticated hedge funds are trading is a powerful tool for identifying trends.
Options trading can often be dismissed as too risky or too confusing. But it’s time to expose some of the five biggest options trading myths.
Writing covered call options is a great way to boost your yield on stocks you already own, and involves a lot less risk than most investors think.
Correctly managing winning options trades can be the difference between a double-digit single and a triple-digit home run; here’s how I do it.
Gamblers may be familiar with the Martingale strategy of doubling down on losing bets. But that can be a dangerous investing approach.
The options strategy we’re discussing today is an ideal way to generate additional income by targeting positions you’re bullish on without taking on added risk.
Identifying unusual options activity can be a key to unlocking big gains in stocks that the big hedge funds are about to pour into.
Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three tech stocks.
Contrary to popular belief, options trading is a good way to reduce risk. Weekly options? That’s more akin to a roll of the dice.
Since launching Cabot Options Institute Quant Trader almost two years ago, our win rate has been above 80%. Here’s how we did it.
They say everything’s bigger in Texas, and that even applies to trading. Here’s the story behind the “Texas Hedge” and how to use it.
Wall Street seems divided on Tesla stock on the heels of a massive run. Here’s how to put a bullish or bearish options trade on TSLA.
Over the long run, it pays to be bullish, and with a disciplined trading strategy, you can beat the market... just like we have for the last few years.
On top of being the #1 investment strategy for 2024, this is one of my all-time favorite, tried and true investing strategies.
Cabot offers two very different options trading services to better serve a variety of investors. Here are the differences you need to know.