http://www.theoptionclub.com An On-Line Community of Options Investors and Traders Sun, 19 May 2013 20:21:25 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.1 http://www.theoptionclub.com/2013/05/is-apple-aapl-losing-its-way/ http://www.theoptionclub.com/2013/05/is-apple-aapl-losing-its-way/#comments Sun, 19 May 2013 20:21:25 +0000 Technical Support http://www.theoptionclub.com/?p=1433 In a recent Bloomberg news poll, 71% of investors believe Apple has become less innovative. Has Apple lost its way? In today’s short five minute video, I will be examining Apple stock (NASDAQ:AAPL) and investigating what drives the price.   For more information on the tools I use in this video, click here to visit]]> http://www.theoptionclub.com/2013/05/is-apple-aapl-losing-its-way/feed/ 0 http://www.theoptionclub.com/2012/12/exploring-diagonal-time-spreads-with-john-summa-ph-d/ http://www.theoptionclub.com/2012/12/exploring-diagonal-time-spreads-with-john-summa-ph-d/#comments Thu, 13 Dec 2012 01:51:38 +0000 Christopher Smith http://www.theoptionclub.com/?p=1247 Diagonal Time Spreads with John Summa, Ph.D. Time spreads are one of the most flexible basic options strategies a trader has available.  This class of trade involves the use of long and short options with differing expiration months.  Depending upon how they are constructed, you might hear them referred to as calendar spreads, horizontal spreads,]]> http://www.theoptionclub.com/2012/12/exploring-diagonal-time-spreads-with-john-summa-ph-d/feed/ 0 http://www.theoptionclub.com/2012/12/how-to-build-and-execute-a-trading-plan/ http://www.theoptionclub.com/2012/12/how-to-build-and-execute-a-trading-plan/#comments Thu, 06 Dec 2012 02:51:28 +0000 Christopher Smith http://www.theoptionclub.com/?p=1223 Building and Executing a Trading Plan [video url="http://www.youtube.com/watch?v=bDirpuvNUKA" width="640" height="360" type="embed" title="How to Build and Execute a Trading Plan" splash=""] Mark Sebastian joined our community for a 1-hour live presentation in which he shared some of his insight and thoughts about building and executing a trading plan. Links to those books and videos referenced during]]> http://www.theoptionclub.com/2012/12/how-to-build-and-execute-a-trading-plan/feed/ 0 http://www.theoptionclub.com/2012/10/protecting-your-trades-during-a-market-sell-off/ http://www.theoptionclub.com/2012/10/protecting-your-trades-during-a-market-sell-off/#comments Tue, 09 Oct 2012 16:40:04 +0000 Christopher Smith http://www.theoptionclub.com/?p=994 We are seeing a continuation of the selling that we saw yesterday. This is a follow through from last Friday when the rally faded intra-day. Market watchers are expecting a poor earnings season on the order of what we saw in 2009, so for many it is only prudent to take profits. Yesterday, I added]]> http://www.theoptionclub.com/2012/10/protecting-your-trades-during-a-market-sell-off/feed/ 0 http://www.theoptionclub.com/2012/08/stock-repair-options-strategy/ http://www.theoptionclub.com/2012/08/stock-repair-options-strategy/#comments Wed, 08 Aug 2012 18:29:50 +0000 Christopher Smith http://www.theoptionclub.com/?p=904 Stock Repair Options Strategy How to Fix a Covered Call Trade We are often asked how to fix a covered call trade or its synthetic equivalent, a cash secured put. The basic scenario involves a trader who was bullish on a stock and decided to trade a covered call or cash secured put, but now]]> http://www.theoptionclub.com/2012/08/stock-repair-options-strategy/feed/ 2 http://www.theoptionclub.com/2012/07/lessons-from-when-genius-failed-the-rise-and-fall-of-long-term-capital-management/ http://www.theoptionclub.com/2012/07/lessons-from-when-genius-failed-the-rise-and-fall-of-long-term-capital-management/#comments Sat, 14 Jul 2012 01:43:10 +0000 Christopher Smith http://www.theoptionclub.com/?p=893 Lessons from When Genius Failed: The Rise and Fall of Long-Term Capital Management As options traders we need to pause and learn the limitations of the Black-Scholes options pricing formula and other mathematical models, and learn to expect the unexpected.I recently finished working my way through When Genius Failed: The Rise and Fall of Long-Term]]> http://www.theoptionclub.com/2012/07/lessons-from-when-genius-failed-the-rise-and-fall-of-long-term-capital-management/feed/ 0 http://www.theoptionclub.com/2012/06/vomma-and-your-options-trades/ http://www.theoptionclub.com/2012/06/vomma-and-your-options-trades/#comments Wed, 20 Jun 2012 16:15:38 +0000 Christopher Smith http://www.theoptionclub.com/?p=889 What Is Vomma? Vomma is a second order option pricing Greek that describes how Vega will change given a one point change in implied volatility, but understanding that is just the start of opening the doors to a deeper understanding of volatility. We do not typically hear much about Vomma, as it is not one]]> http://www.theoptionclub.com/2012/06/vomma-and-your-options-trades/feed/ 0 http://www.theoptionclub.com/2012/06/introduction_to_stock_option/ http://www.theoptionclub.com/2012/06/introduction_to_stock_option/#comments Tue, 12 Jun 2012 04:29:41 +0000 Christopher Smith http://www.theoptionclub.com/?p=886 Stock Option Basics - Becoming An Options Trader Understanding Why Stock Options Are Important and Why You Are Using Them Is The First Step To Successful Stock Option Trading Welcome to TheOptionClub.com Stock Option Tutorial. If you have registered for our complimentary Introduction to Options course you will receive a continuing series of e-mails from]]> http://www.theoptionclub.com/2012/06/introduction_to_stock_option/feed/ 2 http://www.theoptionclub.com/2012/05/butterfly-option-strategy-overview/ http://www.theoptionclub.com/2012/05/butterfly-option-strategy-overview/#comments Mon, 14 May 2012 16:24:59 +0000 Christopher Smith http://www.theoptionclub.com/?p=830 Butterfly and Iron Butterfly Option Trades The graphic below demonstrates the risk graph for an iron butterfly position. An iron butterfly uses both calls and put options.  A butterfly uses only calls or only puts.  With these trades the center strike is always where the short options reside while the outer strikes are where the]]> http://www.theoptionclub.com/2012/05/butterfly-option-strategy-overview/feed/ 0 http://www.theoptionclub.com/2012/05/anatomy-of-an-iron-condor-option-trade/ http://www.theoptionclub.com/2012/05/anatomy-of-an-iron-condor-option-trade/#comments Mon, 14 May 2012 03:37:45 +0000 Christopher Smith http://www.theoptionclub.com/?p=823 Anatomy Of An Iron Condor Options Trade Using an Iron Condor to Trade the SPX (S&P 500) Index, Allows You to Generate Profits on a Large Slow Moving Index. An iron condor trade is a combination of two vertical credit spread trades. This option trading strategy generates a profit by selling both call options and]]> http://www.theoptionclub.com/2012/05/anatomy-of-an-iron-condor-option-trade/feed/ 0 http://www.theoptionclub.com/2012/05/credit-spread-and-the-iron-condor/ http://www.theoptionclub.com/2012/05/credit-spread-and-the-iron-condor/#comments Mon, 14 May 2012 01:35:12 +0000 Christopher Smith http://www.theoptionclub.com/?p=815 The Credit Spread and The Iron Condor The use of “out-of-the-money” credit spreads that take advantage of a trending market has become a popular, "high probablity" trading method. The idea is to place a bullish option spread behind an area of technical support when the market is trending higher or a bearish option spread above]]> http://www.theoptionclub.com/2012/05/credit-spread-and-the-iron-condor/feed/ 0 http://www.theoptionclub.com/2012/05/credit-spread-trading-system-development/ http://www.theoptionclub.com/2012/05/credit-spread-trading-system-development/#comments Tue, 08 May 2012 12:49:33 +0000 Christopher Smith http://www.theoptionclub.com/?p=810 Developing A Credit Spread Trading System Using basic technical analysis principles, a simple but effective system can be easily developed for trading short-term credit spreads. These trades rely upon theta decay to draw value out of the option until it expires worthless, thereby creating a profit for the trade. Because credit spread traders rely upon]]> http://www.theoptionclub.com/2012/05/credit-spread-trading-system-development/feed/ 0 http://www.theoptionclub.com/2012/05/bull-put-and-bear-call-credit-spread/ http://www.theoptionclub.com/2012/05/bull-put-and-bear-call-credit-spread/#comments Tue, 08 May 2012 12:36:56 +0000 Christopher Smith http://www.theoptionclub.com/?p=806 Bull Put and Bear Call Credit Spreads Spreading Options Allow You a Trader to Control Risk, While Assuming an Advantageous Position in the Market. The Bull Put Credit Spread As the name implies, the Bull Put Spread carries a bullish bias and is constructed with put options. Let us assume that XYZ Company is currently]]> http://www.theoptionclub.com/2012/05/bull-put-and-bear-call-credit-spread/feed/ 0 http://www.theoptionclub.com/2012/05/vertical-credit-spread-option-trading/ http://www.theoptionclub.com/2012/05/vertical-credit-spread-option-trading/#comments Tue, 08 May 2012 02:01:18 +0000 Christopher Smith http://www.theoptionclub.com/?p=800 Vertical Credit Spread Option Trading Using a Bull Put or Bear Call Spread as a High Probability Stock Option TradeThe vertical credit spread is a limited risk option trade involving the simultaneous purchase and sale of two differing option contracts. This trading strategy is designed to produce an immediate cash credit to the trader's account]]> http://www.theoptionclub.com/2012/05/vertical-credit-spread-option-trading/feed/ 0 http://www.theoptionclub.com/2012/05/theta-and-time-decay/ http://www.theoptionclub.com/2012/05/theta-and-time-decay/#comments Sun, 06 May 2012 03:01:38 +0000 Christopher Smith http://www.theoptionclub.com/?p=789 Theta and Time Decay Time Decay and Implied Volatility are two key considerations in the option trading decision making process.Stock options have limited life spans. As an option nears its expiration date it loses time value. Understanding this loss of time value, allows us to increase the probability of seeing profits in our option trading.]]> http://www.theoptionclub.com/2012/05/theta-and-time-decay/feed/ 0