The expression “you can’t squeeze blood out of a turnip” refers to not being able to get something out of someone that they don’t have. Stock option trading can often feel like trying to squeeze blood from a turnip. However, with a little effort and some patience it is possible to squeeze blood from the...
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Double Diagonal – Neutral Strategy The Double Diagonal is a neutral stock options strategy. The Double Diagonal strategy is similar to an Iron Condor and can be considered a combination of a Calendar Call spread and a Calendar Put spread. The Calendar Put spread portion of the Double Diagonal is entered by selling an...
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As discussed in the next section, the physical commodities, especially energies and agricultural commodities such as Coffee, Soybeans or Sugar, generally have fundamentals (such as warehouse supplies, consumption trends, or planting and harvest cycles) that do not change over the course of a few months. By positioning only in markets with the most clear...
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An option’s value is made up of intrinsic value and time value. Intrinsic value is how much the option would be worth if it was exercised today. In other words, it is how far it is in the money. For instance, if August Crude Oil was trading near $52 per barrel, an August Crude...
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Why Options Trading? Successful Investors like Robert Kiyosaki and Robert G Allen have popularised options trading through the use of options strategies as part of an overall strategy to financial freedom. They preach that options trading is the investment of the rich. So, what makes options trading so powerful? Options Trading Grants Unprecedented LEVERAGE!...
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If you are looking at getting into options trading, then you should know that there are four different types of options traders. These include the long-term traders, the medium-term traders, the short-term traders and the day traders. For each of these different types of traders, there is a distinct options trading strategy and a...
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