My motto is that position sizing is the only sure way to reduce risk.
Many traders are confused by how the type of account they have affects their option trading.
At this market juncture the home furnishing stocks are doing well.
The key for an options trader is to know when to put on a protective hedge to manage risk.
This is how to find the ideal size and number of positions for your portfolio.
Let's take a look at the pros and cons of both straddles and directional plays, and also when these techniques should be utilized.
Many options traders use spreads in their trading yet they do not know how to calculate the net delta for their spread or how to find the net theta. Phil McDonnell of Options Profits breaks it down for you.
FedEx could be hurt by USPS contract cuts. Let's play this bearish view by selling a vertical call spread.
Some options models suffer from the fat tails problem. Let's examine an underlying index to understand this problem and how to work around it.
A trade with a high probability of success is a very different animal than a low probability long shot.