options and the power of options According to this site, Options are essentially contracts between two parties that give holders the right to buy or sell an underlying asset at a certain price within a specific amount of time. There’s quite a bit to learn about options. I’ve been trading options for nearly 5 years and I can tell you I’ve only scratched the surface. Here, I am doing two things to help you. ...
Don’t believe me? See these pictures Here’s YTD stats: TD ⬆️ 29.5% RY ⬆️ 27.5% CM ⬆️37.46% NA ⬆️ 45.15% BMO ⬆️ 44.74% BNS ⬆️ 21.78% HCG ⬆️ 46% Compare that to the high techs: AAPL ⬆️ 17.8% TSLA ⬆️ 48% NVDA ⬆️ 126.7% MSFT ⬆️ 55.7% Everyone is taking about inflations. That’s great. You may want to read this article to understand how banks make money. “Banks categorize their revenue into two broad areas based on how it is generated – net interest income and non-interest income. ...
#TheStrat learning guide Since I discovered #finwit, I’ve been consistently spending quite a bit of time on twitter trying to hone my trading skill. I recently came across something called the #theStrat. I’ve backtested the strategy with many old charts and I was suprised by how well it has worked. As I am trying to get better at #theStrat, I realized there’s so much unstructured information on the internet and it could become overwhelming for someone trying to learn it. I am hoping the following guide can help the new great trader, like you. ...
If there’s a stock that you think will go up and you are more than happy to buy it at a lower price, this is the strategy for you. A risk-reversal is an option position that consists of being short (selling) an out of the money put and being long (i.e. buying) an out of the money call, both with the same maturity. A risk reversal is a position which simulates profit and loss behavior of owning an underlying security; therefore it is sometimes called a synthetic long. This is an investment strategy that amounts to both buying and selling out-of-money options simultaneously. In this strategy, the investor will first make a market hunch; if that hunch is bullish he will want to go long. However, instead of going long on the stock, he will buy an out of the money call option, and simultaneously sell an out of the money put option. Presumably he will use the money from the sale of the put option to purchase the call option. Then as the stock goes up in price, the call option will be worth more, and the put option will be worth less. ...
I am doing an experiment in my training trading account with Interactive Brokers . I purchased these LEAPs at the beginning of 2020. AMD $60 calls trading at $7.20 , breakeven $67.20 TSLA $600 calls $62.85 , breakeven $662.85 BYND $120 calls $21.85 , breakeven $141.85 AAPL $330 calls $28.95 , breakeven $358.95 How have them performed? Well, apple did a split and is at $150. Tsla is over $1000. AMD is at $150. ...
Options Trading 101: The Butterfly Spread Strategy Explained Ever feel like a stock is glued to a specific price? Some stocks just seem to hover around a certain level, barely budging for weeks. If you’re looking for a way to profit from this lack of movement, the Butterfly Spread strategy might be just what you need. It’s like betting on a stock to stay put, but with a twist. Let’s break it down. ...
Options Trading 101: The Collar Strategy Explained Ever feel like your stock portfolio is a rollercoaster ride? One day you’re up, the next day you’re down, and you’re just trying to hold on for dear life. Enter the Collar strategy. It’s like putting a seatbelt on your investments—you’re still in the ride, but you’ve got some protection if things go south. Let’s break it down and see how it works. ...
Options Trading 101: The Diagonal Spread Strategy Explained Ever feel like you want to have your cake and eat it too? In the world of options trading, the Diagonal Spread is about as close as it gets. It’s a strategy that lets you profit from time decay while still keeping an eye on directional movement. Think of it as a hybrid between a Calendar Spread and a Vertical Spread—flexible, versatile, and perfect for traders who like to think outside the box. Let’s break it down. ...
Options Trading 101: The Bear Put Spread Strategy Explained Ever feel like a stock is about to take a nosedive, but you don’t want to risk your entire savings on a single trade? Enter the Bear Put Spread strategy. It’s like buying insurance for a stock’s decline, but with a budget-friendly twist. Let’s break it down and see how it works. What Is a Bear Put Spread? A Bear Put Spread is an options strategy where you buy a put option at a higher strike price and sell a put option at a lower strike price on the same stock with the same expiration date. Here’s the deal: ...