Blog - Page 2 of 4 - Option Posts

Shorting Stock in 2019: The Definitive Guide

Short Stock Definitive Guide 2019

Shorting Stock in 2019: The Definitive GuideIf you’re serious about making money in the stock market, you need to understand shorting stock.  Why? Well, the market doesn’t always go higher. In fact, the stock market goes higher only about 50% of the time.  Instead of waiting it out or losing money when the stock market goes lower, […]

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Can I Buy Stocks Just For The Dividend?

DIVIDEND CAPTURE Strategy

One seemingly profitable trading strategy is dividend capture.Here, an investor focuses on buying stocks just before the stock’s ex-dividend date in order to collect the dividend payment and quickly selling the stock afterwards.This seems like an almost risk-free strategy because you are only holding the shares of stock for a short period of time, while […]

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Which Financial Markets Should I Watch?

markets to watch

Newer options traders often ask, “What stocks should I watch?”.  There are in fact over a 1,000 publicly traded companies on which you could keep tabs, but in this article we’re going to talk about the few futures markets you should watch.   You don’t have to actually trade futures contracts, but these specific futures markets […]

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Is The Stock Market Predictable?

STOCK MARKET PREDICTABLE

Many Wall Street professionals will tell you that they can predict future stock market shifts. They might claim to use complex algorithms or advanced technical indicators to determine future stock prices. While they may be right occasionally, we believe that such prediction is fundamentally an act of guesswork, and that it is in fact impossible […]

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54 Options Trading Tips For All Skill Levels

54 OPTIONS TRADING TIPS

Investors are always looking for tips to help improve their options trading results. We are no different, so we created a list of 54 tips for options traders. Trading options the right way allows you to have a high probability of success, which leads to consistent trading profits. In fact, we can construct options trades […]

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Options vs. Stocks: Which is better? [3 reasons]

OPTIONS VS STOCKS

In this article, we’ll discuss the benefits of trading options over stocks. Most people are familiar with stocks as the traditional investment vehicle. Because of their simplicity, stocks are where the majority of self-directed investors focus their time and energy. However, once you break the learning curve, options trading offers a few key benefits over […]

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8 Reasons Why You Are Losing Money Trading Options

why you are losing money trading options

A commonly quoted statistic is that only the top 10% of traders are ever successful. If you’ve started trading options with little success, rest assured: you have come to the right place. Here at Option Posts, we believe that trading is a skill that can be taught to anyone willing to learn. Taking the time […]

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Option Moneyness [Explained]

Options are classified as In-the-Money (ITM), Out-Of-The-Money (OTM), and At-The-Money (ATM), three categories which describe the position of the option strike price relative to the current stock price. These categories are called option “moneyness.” Let’s take a look at these moneyness categories with examples. In-the-money (ITM) An option contract is said to be in-the-money when […]

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When is the optimal time to put on an options trade?

Options trading is unique in that options contracts expire at a specific point in the future; this time component makes them fundamentally different from other kinds of trading. However, timing can be a tough aspect for new traders to understand. For any one stock’s options, you can choose from many different expirations, ranging from a […]

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How to Read Option Profit/Loss Diagrams

reading option pl diagrams

Option profit/loss diagrams visually represent an option strategy’s profits or losses as the different inputs into the pricing model change. As you dive deeper into more complex options strategies with multiple buying and selling options, these diagrams will be the key to seeing how to profit from time decay and volatility (factors unrelated to stock […]

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