Gavin McMaster has a Masters in Applied Finance and Investment. He specializes in income trading using options, is very conservative in his style and believes patience in waiting for the best setups is the key to successful trading. He has been trading options since 2004 and teaching traders since 2010. Follow him on Twitter at @OptiontradinIQ
A bear put spread is created through buying an out-of-the-money put and selling a further out-of-the-money put. The maximum profit is equal to the distance between the strikes, less the premium paid. The...
Apple has had a huge rally and could be ready for a small pullback. Today we’re looking at a broken wing butterfly trade that creates a profit zone between 155 and 175. Yesterday, the stock closed around...
Yesterday, with TGT trading at 130.60, the July 21 put option with a strike price of 125 was trading around $2.88. Traders selling this put would receive $288 in option premium.
It’s a very quiet week on the earnings front with just a couple of names of interest. Those include Nio (NIO), Gamestop (GME), Docusign (DOCU), Gitlab (GTLB) and Campbell Soup Company (CPB).
Markets breathed a sigh of relief last week as it appears the debt ceiling drama has come to an end (at least for now). Even with that behind us, there are still plenty of things to watch in the upcoming...
High volatility stocks have the highest return potential with covered calls, but they also have the highest risk of an adverse price movement. It’s all about finding a strategy that fits the investors...
Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike.
Earnings season is winding down, but we still have a couple of big names reporting including Broadcom (AVGO), Salesforce (CRM), Crowdstrike (CRWD) and Lululemon (LULU).
The general market ended the week basically flat with the S&P 500 ($SPX) (SPY) being up 0.33% on the week. That does not tell the full story of the week though, there was some excitement and letdown...
Selling the June 16 put with a strike price of 195 and buying the 190 put would create a bull put spread. This spread was trading yesterday for around $1.00.
