In this video Todd Gordon of TradingAnalysis.com uses the Fibonacci and Elliott Wave tools to outline the most likely path for the S&P 500 and IBM in coming weeks.
Learn more about TradingAnalysis.com here.
Plan Your Trade, and Trade Your Plan,
Todd Gordon
Let's face it traders, nobody knows where the market is definitely headed next. But using certain market analysis methods we can put the probabilities in our favor to calculate where we should, and probably won't go, next - which is all you need to make money with options.
In this video Todd Gordon of TradingAnalysis.com uses the tools of Fibonacci and Elliott Wave to outline the most likely path for the S&P 500 and sets up one options trade in the SPY to profit from two different outlooks in coming weeks.
Learn more about TradingAnalysis.com here.
Plan Your Trade, and Trade Your Plan,
Todd Gordon
Capital preservation and minimizing losses should be the most important objectives of any investor or trader. Warren Buffett is credited with the saying:
Rule No. 1: Never lose money
Rule No. 2: Never forget Rule No. 1
Oftentimes, investors are drawn to options because they think of them as a way to limit risk while still offering huge potential profits. This is true in theory, but the reality is a different story.
An option is a wasting asset. It has a limited lifespan, and every day that it draws closer to expiration, its value erodes as the chances of it being profitable diminish. This is known as time decay.
There are two types of options, and you can be a buyer or seller of either: Continue reading "Profit With Less Risk With This Options Strategy"
Using a covered call strategy can be a great way to generate steady returns in your portfolio. As a general rule, I expect my covered call trades to increase my capital by about 25% to 35% per year, depending on the market environment.
(If you're new to the covered call strategy, click here for an introduction to how this strategy works.)
Whenever I set up a new covered call trade, there are a number of different dynamics to be aware of.
I always want to start with an underlying stock that has a high probability of increasing in price. I typically look for stocks with strong fundamental growth and a chart pattern that indicates investors are steadily buying the stock.
Next, I want to make sure that the option contract we use has plenty of premium built into it. Since we make our income by selling attractively priced call options, we need to make sure we're getting a good value for the contracts we sell. Continue reading "Options Traders: Watch Out For This Little-Known Income Killer"
No matter what the investment, an investor needs to know and fully understand the potential risks of the investment prior to committing capital to that investment. In the options market, the Greeks define and quantify the risks of your position before you commit to the investment. Understanding the Greeks is a must for proper risk management. Further, the Greeks can also help you identify and select not only the proper strategy to fit the opportunity you selected, but also which specific options to use to create that specific strategy. Without a full understanding of the risks of an investment, an investor should never commit hard earned money. If you do not know your Greeks, you have no business being in the options market!
WATCH NOW: Ron Ianeri's OIW Greeks
Best,
The INO TV Team
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