I’m often asked, “What’s the best stock for credit spreads?” Admittedly, as a quant-based options trader, I’m dumbfounded by the question because it would require me to have a crystal ball, and unfortunately, my crystal ball broke decades ago. So, I can’t answer the question with any accuracy. However, I can tell you how to… Read more »
The wheel options strategy is an inherently bullish, mechanical, options income strategy known by various names. The covered call wheel strategy, the income cycle, and the options wheel strategy are just a few of the many names that investors use. But one thing is certain, the systematic approach remains the same. More and more investors… Read more »
I’m often asked about my favorite options strategy. What’s my bread and butter? Statistically speaking, it doesn’t get much better than the short strangle. Some say it is the ultimate options strategy. A short strangle is a neutral, range-bound options strategy (short call and short put) that has undefined risk and limited profit potential. Typically,… Read more »
One of my favorite options strategies is the covered call. Simple, straight-forward and easy to manage. Covered calls allow you to lower the cost basis on stocks you already own or, alternatively, give you the opportunity to generate a steady stream of income. But today, I don’t want to discuss covered calls. I want to discuss what is,… Read more »
I’ve been using traditional iron condors for years. And there is no doubt that iron condors are one of my favorite strategies. But, when the opportunity presents itself, I favor a strategy similar to an iron condor, but with a slight twist…the jade lizard options strategy. Weird name, I know, but it seems almost all options… Read more »
Almost every day, I’m asked, “how do I protect my profits using options?” But the question has been rolling in far more frequently as of late, so I’m going to go over my favorite strategy, step-by-step, for protecting profits without giving up potential future returns. I mean, it’s no surprise to me that protecting profits… Read more »
One of my favorite, defined risk, non-directional options strategies is known as the iron condor. Yep, weird name, I know. But the name makes perfect sense when you look at the profit/loss chart for the strategy. An iron condor is not only one of the most powerful options strategies, it’s also one of the best… Read more »
A bull put spread, otherwise known as short put vertical spread, is one of my favorite risk-defined options strategies. As the name of the strategy implies, a bull put spread is, well, a bullish-leaning strategy. But it is important to note that the strategy doesn’t require the security to move higher to make money. With… Read more »
A bear call spread, otherwise known as a short call vertical spread, is one of my favorite risk-defined options strategies. As the name of the strategy implies, a bear call spread is, well, a bearish-leaning strategy. But it is important to note that the strategy doesn’t require the security to move lower to make money.… Read more »
I rarely buy a stock or ETF at its current price. Why would I? Selling puts is a much better alternative. If I’m truly interested in buying a security, I typically have a price target below the current price of the stock. Most investors just set a buy limit at their price target and hope… Read more »
You’ll get Andy’s latest trades and takes on the market, along with four free options trading reports, discussing High-Probability Trading, Poor Man’s Covered Calls and more!
