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options trading

How to Measure Price Movement When Trading Options


When trading options, there are several factors that affect price - not just the value of the underlying asset.

The variables that exist that account for the fluctuations of an option's price movement are known as the options "Greeks," and we've covered many of these.

I've told you that delta - how an option's price will move with price movements in the underlying - is the single most important factor in determining an option's price.

Today's "Greek" shares a special relationship with the delta. I like to call it the "delta accelerator."

Here's what I'm talking about...

Target Big Price Moves Easily with This Options Trading Strategy


Volatility has a huge impact on options pricing, and you need to understand the mechanics of how that happens and what it means for your money.

This options trading lesson is crucial - you'll learn how to find stocks with a chance to make big moves... and how to identify potentially lucrative options plays to profit on those moves.

We're going to explore in detail the "Greek" that measures changes of an option's value based on how much the implied volatility on the underlying security changes.

Let's take a look...

Don't Fear Options – Start Trading with These Four Steps


A Money Morning reader recently wrote in and summed up what we often hear: "Options scare the heck out of me."

It's common for investors to think options are too risky for them. That's why many never bother to try.

But the options trading strategies I teach you can reduce risk by up to 90% compared to if you bought the underlying stock. And in 2008, when many lost 50% of their savings to the stock market plunge, options could have reduced that loss to 10%.

The markets will do whatever they want. It is not what happens in the markets that will make or break you. It's how you deal with what the markets do after you make your entry decisions that will set you - and your profits - apart from others.

My goal is to have you learn exactly what options can do for you. Understanding the potential reward as well as the risk can help you overcome your fear. I'll show you the proper principles and rules to follow so you know what to do and what not to do.

Let's get started...

This Number Is Crucial to Trading Options Successfully

trading options

Wondering how to find out ahead of time if your options are going to make a move in price? There's only one number you need to know.

This number is crucial when trading options for a couple of different reasons. It can also help you determine which ones to buy in the first place.

And it's considered by many to be the most important component of an option. Here's what you need to know...

Three Rules for Options Trading Success

options trading

What's the true measure of a trader's success?

Last Tuesday, I told you that two of the most important things you can do as a trader is to build a plan for every trader, and to stick with that plan through the end of the trade.

But before you can build an effective options trading plan, there are three rules you need to consider.

Let me show you what I'm talking about...

Why Your Trading Plan Is Pure Gold


There is an old adage that traders are told to live by that goes, "Plan your trade and trade your plan."

There should be a follow-up to that one that says, "Stick to your plan no matter what."

Beginning and experienced traders alike seem to get something in their heads that makes them change their original trading plan.

That's one of the worst mistakes a trader can make. Here's why...

The One Long-Term Options Trading Strategy You Need to Know Now

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The mindset of short-term options trader is to get in, get out, and turn profits quickly - typically, the more efficiently you can use your capital, the better.

But for those from a long-term, buy-and-hold background, this short-term, options-based way of generating income can be a lot to take in.

So today, I'm going to show you a long-term options trading strategy sure to boost your portfolio...

My Favorite Trading Strategy for the "Super Crash"

prices going down

A lot of folks - especially individual investors - don't like to bet on stocks that are going down. That's understandable. It doesn't feel as good to bet against something.

But it would be prudent for investors to hedge their gains of the last five years; trees don't grow to the sky, especially when their roots are rotting.

This could help you do very well as stocks dive lower. Especially if you know how to use this trading strategy...

The Best Non-Directional Options Trading Strategy in the Markets

Many of the options trading strategies I have shown you have been directional trades. That means the option position requires the underlying stock to make a particular move in price - either up or down - for the trade to work.

But how would you like a strategy that allows you to place a trade that doesn't care which way it moves, just so long as it moves?

That's what I'm going to show you today...

How This "Loophole" Trade Delivered Twice the Money – Ahead of Schedule

Loophole trade

FedEx Corp. delivers "the world on time" to its customers and slow, steady growth - along with a $0.25 dividend - to its shareholders.

In fact, in 1983, it became the first American company to pull in more than $1 billion in revenue without any mergers or acquisitions, and it's been outperforming ever since.

FedEx makes a good, if expensive, foundational holding, but its $44 billion market cap, low volatility, and 282.3 million shares make it close to the last stock you'd ever expect to double your money quickly, let alone in less than three weeks.

But thanks to the easy, inexpensive trade I'm about to show you, that's exactly what happened.

Here's how we were able to turn a modest move up in FedEx shares into a 100% gain...

Directional Traders Will Love This Lucrative Options Trading Strategy

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Directional traders assess the direction of the broader markets or individual securities and then trade accordingly. So what strategies do directional traders use?

Today, I'm going to show you a simple options trading strategy that allows you to target lucrative opportunities... and it relies on a tool we've talked about a lot in recent weeks: the simple moving average.

Let's get started...

More Orders to Juice Your Options Trades and Preserve Your Capital


The last thing you want to do is subject your money to the whims of your emotions. That's not investing - that's gambling.

I recently told you that orders are one of the best ways to remove your emotions from your options trades.

Today, I'll show you a few more orders to help you maximize your returns and protect your investing capital...

How to Use Orders to Target Options Trading Profits

buy sell dice

In the world of investing generally - and options trading in particular - it is not only important to know when to get in and get out of a trade, it is also important to know how to do so.

The markets move incredibly quickly, and you need to be prepared for whatever happens next. That means tailoring your orders to fit your trades, and having them into your broker ahead of time.

Using these ordering strategies, you can maximize your profits (and minimize your losses). Here's what you need to know...

The Options Trading Chart "Cheat" That Reveals Direction

options chart

With options trading, I don't care WHICH direction a stock is headed. I just need it to move.

And this "simple" indicator tells me everything I need in one line...

How to Get Triple-Digit Gains on the Australian Dollar


So, the Fed's going to wait to hike interest rates. That suits us just fine. Even if they had raised rates yesterday, it would still be way down on the list of risks we face right now.

At the top of that list, though, are what I've called the "Three Cs" of risk in this market: China, commodities, and currencies.

That's where the smart money is headed - and I'm going to show you the best way to profit from this shift...