Online Trading

The Performance of Options-Based Investment Strategies: Evidence for Individual Stocks During 2003–2013 Link to full paper Abstract Using data from January, 2003, through August, 2013, we examine the relative performance of options-based investment strategies versus a buy-and-hold strategy in the underlying stock. Specifically, using ten stocks widely held in 401(k) plans, we examine monthly returns..
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The video embedded below is several years old and the video quality could be better. However, it remains an excellent introduction to options and I’m offering the lesson to everyone (at no cost). I trust you will enjoy it. http://www.mdwoptions.com/Premium/freevideos/Beginners.mp4 The video is also on You-Tube The post Introduction to Options: The Video appeared first..
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Question (black font) and answer (blue font): Dear Mark, Hello Antonio Firstly hope everything is OK as you don’t write too frequently in the blog. I am writing much less these days, and most of that appears in my about.com column. Maybe you remember me Sure I remember you because throughout the years I have..
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1. What’s your strategy on buying LEAPs options? In order to avoid time decay, when do you roll out if you have a long term view and would like to hold on the securities as long term investment? I guest the pros probably do it within at least 6 months of remaining time value? I..
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One of my basic tenets in teaching people how to trade options is that rules and guidelines should not be written in stone and that there are valid reasons for accepting or rejecting some of the ideas that I discuss. When I offer a rationale or explanation or a suggest course of action, it is..
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Interesting story in today’s Wall Street Journal online. Most people are familiar with the VIX, the CBOE Volatility Index. It uses options prices to measure the expected volatility of the S&P 500 index. A lesser known index is the RVX, the CBOE Russell 2000 Volatility Index. This uses the exact same formula as the VIX,..
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(Reuters) – Growing concerns about the economy and markets sent volatility soaring on Wednesday [Oct 15, 2014] and pushed trading volume in the U.S. options market to its highest level in more than three years, as traders moved to hedge their portfolios on fear of further market gyrations. You can read the whole article at..
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Introduction to Options: The Basics has been revised and updated. It remains a very basic introduction to options, but now it has even more useful material. The book is still free, and you can download it or get it from your favorite online bookseller. Volume 0: The Basics NOTE: DO not pay $0.99 at amazon.com…
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I’ve been asked to do it many times, and I am happy to announce that the Rookie’s Guide to Options, 2nd edition is available in eBook format. At this time, the only versions available are Kindle and pdf. The new eBook and the paperback version were updated (minor changes) Sept 11, 2014. The post The..
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As a general rule, I am not a fan of services that predict where the stock market is headed next. Nor do I believe that most advisory services can steer their clients into profitable trades. However, the quality/integrity of services differ and today I’d like to mention one that I think is worth consideration. Please..
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