Category Archives: Trading Options

You Have Options – What Is An Option

You Have Options - An Options Investing Blog I've always been fascinated with options. Not because of the potential of a large payout, but just the structure of them. I don't believe in the big payday hype, and neither should you. For 99.9 percent of options traders, trading with such strategies will surely destroy your…
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The Role Of Psychology In Trading

The Role of Psychology in Trading Dr. Van Tharp is known for breaking down the trading process into three categories that affect traders. He categorizes them by importance as follows:   Trading strategy (10%) Money management (30%) Psychology (60%)   According to Dr. Tharp, the psychological outlook and an individual’s way of thinking towards trading…
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You Have Options – What Is A Put Option?

The Put Option If you can recall, during our last blog we explained what an option actually is. We also went into detail on buying and selling calls. Call options is only half of the story. Although for the majority of this blog we will be selling covered calls, it is crucial we go over…
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Valuation Of Options

How are Options Valuated   In this chapter, we will talk about the valuation of options and their premium. Certain terminologies have been used repeatedly in the previous chapters and you will probably be familiar with them. Understanding moneyness, or valuation, will allow you have a solid understanding of the foundations and help you in…
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