As the dust settles from the Wall Street meltdown of 2008, the average investor needs to chart a course that threads its way through future growth and perils. Simply relying on the old investment adages may not be the wisest course. Here’s some things to think about. (1) Wall Street is not your friend. At [...]

Straddle option strategy is a non-directional strategy. This means that you can make money without knowing where the market will move. It doesn’t matter if it moves up or down, you can make money if it moves either way. The position is created by purchasing the same number of call and put options with the [...]

1. Buy option with longer time to expire. This means you have more time to be right. But this kind of options is more expensive because it has more time value. I usually buy options with more than 3 months days before expiration. 2. Options usually lose most of their value in the last 30 [...]

Black Scholes, also known as the Black Scholes Merton Model, is believed to be the base of all financial theories and is practically very useful in determining the value of all European call options. It has a practical importance in finding the asset values of all the heavily traded assets. It serves the base model [...]

The book, Options Writing Strategies for Extraordinary Returns is written by David Funk. The book is superbly written and is about call and put option writing techniques which can be used by investors so that they can make profits from the market irrespective of the direction the market is moving in. The book has options [...]

If you are into a business management school and learning more about risk management in the field of business then you will certainly come across different Greeks that are very important to understand the fundamentals of risk in business. There are five different types of Greeks which are Delta, Theta, Rho, Gamma and Vega where [...]

Income generating option strategies is an option strategies that makes money when you enter the position. The income is generated when you sell option, either selling put option or buying put option. Here are some strategies to consider: Selling naked puts. You will get income by selling put. This is a perfect strategy if you [...]

Most option strategies are are centered around making the right call on the direction of a stock. This approach relies on the accuracy of guessing the direction of the stock. Thus the chances of profiting are low. By using a combination of Bull and Bear Credit Spread, an Iron Condor position can be created. It [...]