Synthetic Short Stock The only advantage of a synthetic short stock position over just shorting the stock itself is the margin requirements. It takes less margin to use a synthetic short stock position as compared to just shorting the stock. Another reason some people use a synthetic short is because mentally, they seem less scared […]
Covered Call – The Strangle Entry When people learn option trading strategies they typically start with the old faithful of option trading strategies, the covered call. Trading a covered call option strategy is one of the foundation option trading strategies that everyone learns. But, what some people do not realize is that a covered call […]
Strangles – What are they and How do we Trade Them? Strangles are the only uncapped risk, limited reward strategy we trade. As a result we are highly selective about how we trade Strangles. We base our strangle trades like we place our probability based non-index and Broken Wing Iron Condors. We use probabilities and […]
Learn Option Trading Strategies Are you wanting to learn to trade stock options? Looking to learn option trading strategies that really work and are high probability? If you want to learn options trading we can absolutely help you, with no monthly subscription and no huge upfront cost for learning options trading. First of all let […]
The Covered Call Naked Put Strategy There are a lot of ways to get into a covered call trade. We actually prefer to use Diagonals but there is another way that can be very profitable if properly traded. If you trade options for profit or stocks for profit you need to know the best ways […]
MACD Divergence Strategy MACD (Moving Average Convergence Divergence) is a very popular trading indicator. It is in essence a trend following indicator that shows the relationship between two moving averages. The most used settings are the 12 period exponential moving average (EMA) and the 26 period EMA. The MACD value is calculated by subtracting the […]
52 Week High Trading Strategy Are you looking for a new ideas about finding a trade? There are a number of different strategies revolving around stocks reaching a 52 week high. Today we want to discuss one that is worth taking a look at. Keep in mind we are not saying this strategy will work […]
Calendar’s can be a good way to trade a range bound security. I have a number of formulas I use to determine if a particular trade shows promise as a calendar. Most of them can be broken down into this simple statement. You want to sell more time than you are buying. What does this […]
I have been trading a new strategy over the six months. I am calling it New High Runner until I figure out a better name. Feel free to suggest a better name in the comments. Like the name says, I am looking at stocks showing strength over the past year and trading at close to […]
The Iron Condor is one of my favorite strategies. If you do know what an Iron Condor is, Click Here. If you do then you know the power of the Iron Condor trade. I rarely hold my Condor’s until expiration, my goal is to take advantage of time decay and close the position as early […]
