Recent content by ayande
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Can you have a cash secured put AND a covered call on the same stock at the same time?
A cash secured put is equivalent in risk/reward to a covered call, so by having both you just have double of the same risk exposure. Depending on the put/call skew, however, one position may be slightly more lucrative than the other. Also, with a covered call you can move the equity break-even... -
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Overtrading: Share Your lessons learned
I find that over-trading has a certain feeling to it, and I don't like it. Sometimes it takes me a bit to notice it, but once I do, it's a clear sign that I'll do better for the day if I pull back. John -
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Ok I have read and read and read and still don't understand what an option is.
You can think of an option just like an insurance contract: If I think a stock may go up, I buy the right to purchase it at stated future price. The reason I'd do this is because the price I pay is at a discount to that future price, in exchange for taking on the risk that my option may expire...