Category Archives: Trade Demonstration

Documents decisions made during life cycle of a trade

Plowing Some New Ground

[responsivevoice_button rate=”0.9″ pitch=”0.5″ volume=”0.8″ voice=”US English Female” buttontext=”Play”] So far, we’ve played with trading options in equities (stocks) and exchange traded funds (ETFs).Today, we’ll look at a third underlying, index funds. Specifically, we’ll take a dive into the SPX. It’s … Continue reading

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Lions on the Beach

[responsivevoice_button rate=”0.9″ pitch=”0.5″ volume=”0.8″ voice=”US English Female” buttontext=”Play”] In Ernest Hemingway’s Old Man and the Sea the aging Santiago dreams about lions on the beach, a metaphor that captures an old man’s nostalgia for his youth. An old man myself, … Continue reading

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Putting on a Different Kind of Option Contract

[responsivevoice_button rate=”0.9″ pitch=”0.5″ volume=”0.8″ voice=”US English Female” buttontext=”Play”] So far, our focus and example trades have involved call contracts. I’ve displayed my preference for vertical spreads over naked options, and the spreads we’ve looked at have been credit spreads, which … Continue reading

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Shorts for a Summertime Trade

[responsivevoice_button rate=”0.9″ pitch=”0.5″ volume=”0.8″ voice=”US English Female” buttontext=”Play”] Last week we bought (that is, went long on) an ITM call. This week we’ll watch what happens when we go short on an OTM call. A trader who goes short on … Continue reading

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Calling All Traders

[responsivevoice_button rate=”0.9″ pitch=”0.5″ volume=”0.8″ voice=”US English Female” buttontext=”Play”] In option trading, a call is a type of contract. Traders can buy calls, which give them the right for a specified amount of time to buy stock at a specified price. … Continue reading

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