What Is An Option?

For Options Beginners, What Is An Option? You heard the hype on TV infomercials. You may have seen full page advertisements in the newspaper or received mail filled with get-rich-quick promises. All you have to do is pay a few thousand dollars and attend some seminars. Forget it. That’s not a sound method for learning about the advantages of using options. But, what is an option? Options allow an investor to reduce risk and provide an improved chance to profit from stock market investments. But first, it’s necessary to understand the basic…

Ways to Get Paid

Multiple Ways to Get Paid It still amazes me that after all these years of trading and being involved in the financial education business I never find it a challenge to write about the things concerning the markets and the challenges that traders face when attempting to negotiate them. Having just finished up a recent 3-day long Market Timing Class, it was fascinating to explore and talk through the many hurdles the students had before coming to class. Most of them decided that the only way to overcome their issues…

Bear Put Spread

What Is a Bear Put Spread? Here’s the basic setup of a bear put spread, along with how to calculate the position’s maximum gain, maximum loss, and breakeven point. There are plenty of ways to profit on a stock‘s movement, beyond investing in the actual stock itself. Options provide a nearly endless array of strategies, due to the countless ways you can combine buying and selling call option(s) and put option(s) at different strike prices and expirations. A call is an options contract that gives the owner the right to…