option-trading Tag Posts Index

What is positive versus negative mathematical expectation in option spread trading?

What is positive versus negative mathematical expectation in option spread trading? I watched an interesting video blog article by Ryan Jones, the author of a blog

Ford Put Play

This trade on Ford I plan to sell cash backed puts to buy 100 shares of Ford at $5.00. I own Ford stock, an American automobile manufacturer. The is a dividend stock

Investment Strategy: “in the money” covered calls

One of the first strategies people learn in options trading is buying and selling calls, but a close second is selling covered calls. Today I want to share a variant

Managing Option Spreads

Managing Option Spreads If you have been following my blog on options trading, today’s blog is a logical next step. Today I would to start with a framework and a

Option Trading Review: What is a spread trade?

Source A very popular type of trade amongst option traders who are into math is the spread. The is a two transaction trade, where the first part involves selling

Review: Trading options on ETF versus Index traded Funds.

Review of trading the SPY (the ETF) vs. the SPX (Index). Trading-related Differences SPX, DJX, NDX, and RUT options are Index Options. They are European Style options,