Tag: licensed financial adviser
Double Diagonal Pre-earnings Trade
When it comes to playing stock earnings announcement events with options, there are pre-earnings trades that enter and exit the trade before the earnings event. Contents Example Of A Double…
Read More »Earnings Risk Hedging With Zero-Cost Collars
A zero-cost collar consists of buying a put option and selling a call option to finance the cost of the put option. When the correct strikes and expiration are chosen,…
Read More »Option Greeks Of The Put Credit Spread
We will assume you already know that a put credit spread has a positive delta, positive theta, and negative vega. Today, we will dive deep into how these Greeks change…
Read More »Rolling Options Positions For A Credit
Rolling an options position for credit involves closing an existing position and opening a new one to collect additional premium. This technique is primarily applied to short premium strategies such…
Read More »How To Buy The Dip With The PSAR Indicator
The strategy commonly referred to as “buy the dip” is where an investor buys (or goes long) an underlying asset that has dropped in price but is expected to rebound…
Read More »What is the Best Delta for Put Spreads
When selling out-of-the-money put credit spreads for premium, one of the most important questions to ask is what delta to sell them at. Contents What Delta Is This Put Spread?…
Read More »What Happens in an Options Ratio Spread at Expiration?
Let me be more specific on what ratio spread I’m talking about. Because there are many types of ratio spreads. Contents Price Of Stock Greater Than Strike Prices Price Of…
Read More »Behavioural Biases That Impact Asset Allocation Decisions
Contents Introduction: How Emotions Influence Investment Choices Overconfidence Bias: Believing You Know More Than You Do Loss Aversion: The Fear Of Losing Money Recency Bias: Overemphasizing Recent Events Herding Behavior:…
Read More »Asset Allocation by Age: A Guide to Investing Over Time
The Importance Of Age In Asset Allocation Asset allocation—the way you distribute investments across asset classes like stocks, bonds, and cash—plays a pivotal role in shaping your portfolio’s success. However,…
Read More »The Calendarized 1-1-2 Option Strategy
A previous article discusses Tom King’s 1-1-2 option strategy. He has other variations of that category, such as the 1-1-1 and the “long-term 1-1-2”. The 1-1-1 and 1-1-2 are part…
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