Uhl: ‘Controversial’ Alternatives to Trading Earnings

Earnings are typically an amazing time to sell elevated levels of premium in options. The uncertainty that surrounds an earnings announcement will cause the market makers to pump up the options pricing months in advance and, with the more recent broad market volatility, it is juicing up the prices as if they were getting ready to jump on a bodybuilding stage. If you’ve been around options trading for a while you know the typical way to trade earnings is to sell out-of-the-money options and basically create iron condors, short strangles and straddles. The thought behind this is that the expected move, which can be found by taking 85 percent of… Read More

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Earnings Trade Alternatives

Earnings Trade Alternatives Earnings are typically an amazing time to sell elevated levels of premium in options. The uncertainty that surrounds an earnings announcement will cause the market makers to pump up the options pricing months in advance, and with the more recent broad market volatility, it is juicing up the prices as if they were getting ready to jump on a bodybuilding stage. If you’ve been around options trading for a while you would know that the typical way to trade earnings is to sell out of the money options and basically create iron condors, short strangles and straddles. The thought behind this is that the expected move, which… Read More

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Implied Volatility Differences

Volatility percentile is NOT volatility rank.

Volatility Percentile is NOT Volatility Rank. Today’s article is a guest post by David Lero (Instagram: LeroDavidJ).  David is the Vice-President and Head Options Investment Strategist at ROC Investment Group based out of Kansas City, Kansas. David Is sharing his insights and experience from years of trading. Today he is going over part 2 in a series on Implied Volatility. If you read my last article and were introduced to the concept of implied volatility rank for the very first time, then I hope you went out and did your own research over IVR. If you did, then I’m positive that you came across a multitude of people using the… Read More

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HOW TO TRADE LIKE A CASINO

How to Trade like a Casino and Hit the Jackpot

How to Trade like a Casino and Hit the Jackpot As the saying goes, “The house always wins.” Imagine if you could trade like a casino. What if you could be the house? Well, this theory is entirely how options trading is based. An options buyer has the potential to make unlimited gains, just like if you were to hit the jackpot. But it’s not the slot machine players who are building billion-dollar empires, it’s the casinos. Why is that? Because the casinos set the rules and know the statistical outcomes long before you ever step onto the gambling room floor. You too can structure your trading portfolio in this… Read More

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Pattern Day Trading: 3 Ways to Avoid Getting Your Account Locked

Pattern Day Trading: 3 Ways to Avoid Getting Your Account Locked If you have four or more day trades in any five-day period, meaning you enter and exit a single position in the same trading day, then you are classified as a “pattern day trader.” While that on its own is not a bad thing, what happens because of the FINRA regulations on day trading can set you back up to 90 days. Pattern day trading is defined by FINRA as “any customer who executes four or more “day trades” within five business days.” The rule goes on to specifically include individuals with margin accounts with an equity value of… Read More

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