What do you trade?
We trade stock options. Options are the majority of what we trade but we do, sometimes, by shares of stock.
What are the benefits of options trading?
Options are a derivative of stocks that offer fantastic leverage for 3 reasons:
- You don’t have to invest a lot of money to get started.
- You can achieve enormous returns if you are correct on direction and time.
- Risk is manageable; you only can lose what you put into the trade as a buyer.
What is the difference between trading options versus stocks?
The main difference between stocks and stock options is time – options have an expiration date, while stocks do not. However, the leverage gained from options is enormous. Trading shares of Apple with their high price may be prohibitive while trading the options with a lesser amount of capital can be lucrative
What are the different options strategies you use?
We mainly trade straight stock options, meaning buying call options or buying put options. Of course, we utilize several different strategies, like straddles, strangles, spreads, butterflies, or condors. Don’t worry, we teach all those strategies.
How do I use trade options Greeks?
The Greeks (delta, rho, gamma, and theta) are a mathematical way to estimate an option move based on the stock price, the effect of decay, a change in interest rates and a change in price due to time. The Greeks are also useful when figuring out if pricing is good on a particular option
What is the difference between day trading and swing trading?
There are three basic styles of trading based on the holding time of the position.
- Day Trading – Very short-term. buy and sell a position within a day.
- Swing Trading – Medium-term, buy and sell over several hours, days or even weeks.
- Buy & Hold – Long-term. Generally investing not trading buy to hold for a long time.
What makes Swing Trading great?
We love swing trading. With our trade plan, we enter trades when a stock is beginning a move. Swing trading gives our stock a chance to make that move.
Can swing traders make day trades?
Of course, swing traders can make day trades. Profits are the only thing our traders are committed to so sometimes we get into a trade and it moves right away. It’s ok to lock in profits.