Key Takeaways Selling covered calls could help generate income from stocks you already own Selecting strikes and expiration dates depends on the desired risk and reward trade-off of the position Take a step-by-step look at how to trade a covered call So you own a bunch of stocks in your portfolio. Some have made a […]

Continue Reading

Key Takeaways Volatility levels shouldn’t be the only consideration when deciding which options strategy to trade High volatility levels can mean higher options prices, but know the risks Volatility can change drastically from one day to the next Any veteran option trader will tell you that part of the allure of options strategies is their […]

Continue Reading

Key Takeaways Learn the basics of options exercise and assignment Understand the difference between in-the-money and out-of-the-money options The surest way to avoid exercise or assignment is to liquidate or roll a position ahead of expiration  So your trading account has gotten options approval and you recently made that first trade—say, a long call in […]

Continue Reading

Key Takeaways Selling covered calls is a neutral to bullish strategy that involves selling calls, collecting premium, and rolling the options out  Covered calls can be used to generate income and offset a portion of the loss should the stock’s price drop The choice of strike price plays a major role in the covered call strategy […]

Continue Reading

Key Takeaways A swing trade may last days or weeks Some swing-trading strategies offer more than one price target Learn how to structure a combination trade to pursue multiple price targets when swing-trading stocks The objective of a swing trade is typically to capture returns within several days. Swing traders usually know their entry and […]

Continue Reading

Key Takeaways Tracking the risk/reward profile can help you weigh the odds When deciding whether to stick with a trade, ask if you’d initiate the trade as of that point Capital allocation has a mental component as well as a financial one  If you’re like many traders, when you buy a stock, you set your […]

Continue Reading

Key Takeaways Apple (AAPL) announced a 4-for-1 stock split, effective August 31, 2020 When companies split shares, valuations and obligations are designed to remain intact So you traded stocks awhile, got comfortable with the ebb and flow, and decided to add options to your lineup. You did the tutorials, read the articles, watched the webinars […]

Continue Reading