Options Education – Long Straddle

I received a great email from a subscriber that I wanted to share with everyone. The question essentially was “with the potential for volatility on the U.S./China Trade talks should we buy a straddle?”
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Protective Puts

A protective put is used when a trader is bullish on a stock he is buying or already owns, but is wary of the stock’s short-term future. It is used as a means to protect unrealized gains, while giving the trader continued upside potential.
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Position Management

I’ve received a ton of great emails from subscribers over the last couple of days about huge profits this year. I’m thrilled that you are making lots of money. That said, while it’s great that we are making good money, we must remember risks...
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Three Great Questions

The S&P 500 is down 0.5% this morning, though well off the overnight lows (lower by 1.25%) following news that Gary Cohn, President Trump’s top economic advisor, is leaving his position. As the market has heated up, I’ve received many great questions from ...
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1×2 Bull Call Spreads

As the market has rebounded just short of 2018 highs, an interesting and somewhat complex trade structure has become popular: 1x2 Bull Call Spreads.
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Short Volatility Trades

As the market was falling apart and the VIX was exploding to multi-year highs, Cabot Options Trader Pro subscribers executed a short volatility trade, selling an Iron Condor. Here are the details of the trade and some of my commentary.
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Bitcoin and Puts

Bitcoin and crypto- related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies are...
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Managing Winning Trades

As the market was again making new highs yesterday afternoon, I received a question from a reader asking about how I handle winning trades. It's a great subject.
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