Options Trading

As an investor, I love contrarian opportunities. We’re seeing one those opportunities right now to buy cheap oil. Read more

A covered ratio spread is a strategy initiated when little volatility is anticipated and a trader wants to generate cash against an open stock position. Read more

The variable ratio write strategy is a relatively safe way of trading a stock that one expects will experience little volatility in the near future. Read more

If you adhere to the “January Barometer,” you will want to pay close attention to a market downturn during the first month of the year. Read more

The ratio put write strategy is designed for traders with an existing short position in a stock who foresee a period of low volatility on the horizon. Read more

If you are caught in a declining market, you will always be better off using this time-honored income strategy. Read more

A ratio call write is typically initiated when a trader already owns the underlying stock and expects there to be little to no volatility before expiry. Read more

The call ratio spread is considered a “neutral” strategy, as it produces maximum profits when the underlying security rises marginally by expiry. Read more

At times like this, it’s worthwhile for traders to consider pairs trading – i.e., matching sectors that have consistent patterns of negative correlation. Read more