Knowing Where to Stop is Our Best Friend
When we do trading or investment, knowing where to stop is important. The “stop” in this context means a “stop loss” or a “stop win”. Making a trade should know …
Credit Spread Implied Volatility & Delta
Credit spread volatility is critical to the selection and management of income-producing market positions. Whether using Implied Volatility (IV) or Delta, or both, the investor must consider option volatility, along with other data-driven trade selection criteria, to produce the highest reward/risk ratio trades.
Adjust Credit Spreads – Sometimes Before Entering Them!
If the strike prices of a contemplated credit spread order no longer conforms to your trade entry requirements because of a substantial price change in the underlying,, you may be able to restore that conformation by switching to nearby strike prices.
Credit Spread Mistakes | Avoid Them with “The Monthly Income Machine”
Here are the 8 option credit spread mistakes you must avoid to maximize your credit spread & Iron Condor profit results with “The Monthly Income Machine.”
Flash Crashes – Can Options Help Avoid Damage?
A recent question from SaferTrader community has prompted this closer look at Flash Crashes. Are we indeed powerless in the face of a flash crash, or are there defenses? Recognizing …
Mini Options – Do They Fit Your Income Investment Game Plan?
On March 18, 2013 investors began making use of the new exchange-traded mini options. Let’s take a look at the specifics of the options and at: (1) how they might …
Option Order Entry Mistakes – How To Avoid Becoming Shark Bait
Even seasoned option investors can ruin a trade – and their whole month – by lapses in the mechanics or strategy involved in placing their orders. Here are some unfortunate …
Credit Spreads | Trade Entry Criteria and Screening Service
This white paper will detail: (1) Option credit spreads for the risk-adverse income seeker; (2) The Monthly Income Machine specific trade entry criteria I recommend for selecting promising option credit …
Credit Spread Stop Order – Conventional or Contingent?
When using option Credit Spreads or Iron Condors to generate monthly income, you need to place a stop loss order to establish a MRA (maximum risk amount) for every trade. …
Covered Call Income – Extra Earnings from Stocks You Own
Chances are you know that elemental sodium and elemental chlorine are both absolutely deadly. Put some sodium in water and it immediately blazes into white-hot flames. Inhale a few breaths …
Credit Spreads & Iron Condors During Low Volatility Periods
From time to time, the markets will begin a period of unusually low volatility. When this occurs, it can be more difficult to identify attractive income-generating credit spread trades that …
Weekly Options – How and When To Use or Avoid
Recently, the use of Weekly Options has generated more SaferTrader.com “how and when to use” questions, emails and members-only Forum commentary than most other subjects. In this “white paper,” we’ll …
Screening Stocks For Monthly Income Machine Credit Spreads
I’m often asked what stocks, indexes and ETF’s I use for generating my own monthly income credit spread and Iron Condor option trades. The book The Monthly Income Machine spells …
Credit Spread Income: Take Profit Early or Wait Until Expiration?
As it should be, the main trade management focus of “The Monthly Income Machine” is on properly handling the occasional position going the wrong way. But we should also consider …
Credit Spreads – Managing Headline Risks
Often, the markets themselves provide the best reminders of why we need to use all of the Monthly Income Machine entry rules when establishing our income-generating credit spreads and iron …