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One common reason that options traders can’t find consistency is because they lack of a trading plan. You may be able to track your performance, but without an options trading  plan it will be very difficult to repeat your success and minimize risk. A comprehensive options trading plan outlines how you will trade (your method), how much money you will … Read More

One of the hardest things to do while attempting to become a profitable options trader is to find a strategy that you are comfortable with and then sticking with it long enough to give you a chance to play out over many trades. Many of us believe that we can purchase an options trading course or read a book and … Read More

In this article we are going to discuss another options trading “income” strategy called the Butterfly. There are actually two strategies which fall into this category the “Butterfly” and the “Iron Butterfly”. The Butterfly is created using either all call options or all put options where you have a debit and credit spread joined At-the-Money by the short strike price … Read More

We have discussed the definition of two options trading income strategies before: the short vertical spread and the iron condor. In this article we would like to introduce you to another options strategy called the “calendar spread” which is also known as the “time spread”. Like the short vertical spread, when employing the calendar spread strategy, we are selling one … Read More

How does option trading differ from stock trading? This is a great question to ponder as you start to look at the options world. There are many differences due to the makeup of options and there are similarities as well. So let’s take a look at the similarities first. When you buy a stock you want to sell it at … Read More

Is there a difference between a credit spread and a debit spread? Of course you might answer that you receive a credit for the credit spread and pay a debit for the debit spread, right? Well, you might come to find out that it is never as simple as one might think with options trading. Let’s take a look at … Read More

Have you ever joined a trading group? You know, the kind that meets once a month in your local town or maybe an online group or chat room? Are these groups a good idea and can they really help you? Well, it really depends on what you are looking for. In his book High Performance Trading, Steve Ward writes “There … Read More