Butterfly Option Strategy

Important insights into effective option strategiesIn The Complete Guide to Option Strategies, top-performing commodity trading advisor Michael Mullaney explains how to successfully employ a variety of option strategies, from the most risky selling naked puts and calls to more conservative strategies using covered positions. The author covers everything from [...]

Important insights into effective option strategies In The Complete Guide to Option Strategies, top-performing commodity trading advisor Michael Mullaney explains how to successfully employ a variety of option strategies, from the most risky–selling naked puts and calls–to more conservative strategies using covered positions. The author covers everything from options on [...]

Bollinger Bands are a very useful indicator developed by John Bollinger based on a moving average and standard deviations. There are four parts to Bollinger Bands:
1. Moving Average: By default, a 20-period simple moving average is used.
2. Standard Deviations: A measure of the volatility of the price series.
3. Upper Band: The upper band is usually [...]

To every investor, stock market is a challenge. One wishes to meet these, aiming high profits. Is it possible to stay on the pedestal of profits at all times? Is it possible to beat the market with your every move? The answer is clearly in the negative. Profits and losses are part of this game. [...]

When it comes to option trading, the most important lesson to retain is an understanding of what’s actually being traded. The real commodity in any option trading strategy isn’t the underlying stock itself, and it has little to do directly with phrases such as implied volatility, net debit, net credit, strike price, or expiration date. [...]

Placing iron condor spreads on the broad market indexes is a relatively conservative, non-directional trading strategy that may be used for consistent income generation.  This strategy profits as long as the index trades within the channel formed by the two spread positions.  It is best used during sideways or slowly trending markets.Condor SpreadsA condor spread [...]

Would you like to make money from trading but don’t know how to trade?
Have you heard of others making a killing on the markets and wished yourself in their position?
Trading covers a multitude of sins, or at least a multitude of markets. Mention “trading” to a non-trader and they’ll probably think of stock and shares [...]

Trading covers a multitude of sins, or at least a multitude of markets. Mention “trading” to a non-trader and they’ll probably think of stock and shares but there
are many other markets you can trade in. These include commodities, futures, indices, CFDs and options. They all have their pros and cons and some require specialized knowledge.
The [...]

Stock trading is one of the last true meritocracies. All that matters for your investment success are your own decisions. Stock trading is a precision-based activity and one tiny mistake in judgment could send you plummeting right to the bottom and result in a huge loss.
Likewise, the opposite could happen. You may make a great [...]

One will commonly hear or read the following “rule of thumb” for options spread trading:When implied volatility is high, sell credit spreads and when implied volatility is low, buy debit spreads.Unfortunately, this is simply not true. The credit spread and its corresponding debit spread at the same strike prices will always have virtually identical returns [...]