Free
I’ve prepared two short e-books that should be helpful.
Introduction to Options:The Basics
The first is a short introduction to options. It covers the basic concepts and was written for the true novice, or someone who is just getting started with options.
Download your copy. It’s free: Note that there is a shopping cart, but the final cost is zero.
The Rookie’s Guide to Options. Sampler
If you are considering buying The Rookie’s Guide to Options, take a look at this version. It is very short and contains a brief introduction to each chapter. This provides an idea of what’s in the book. Same deal: shopping cart, but zero cost.
I need a personal trainer / advisor / coach.
Will any one work with me one on one by phone?
I could use such help urgently.
Thank You!
Tom,
Urgently? This is not a speedy process.
I do work with individual traders via telephone. We should have a conversation to be certain that I am the right teacher for you. Send e-mail to blog (at) mdwoptions (dot) com for more information
However, if you are looking for a trading coach, the best I can do is recommend someone else.
Mark,
Any ideas yet as to the fee structure for your new “Options for Rookies Premium” website?. BTW, it sounds like an interesting concept.
Thanks,
Greg
Greg,
Not yet set in stone, but am considering:
Bronze Membership
Free
Extremely limited (almost zero) access to premium material
A chance to learn about what is available, without access to the premium content
Gold Membership
$37/month or $370 per year
Access to everything except the courses
My thought is that courses are for people who prefer a more formal education
Options for Rookies Premium is based on on education through access to an experienced trader and teacher – and his thoughts
Access means live interaction (if our schedules allow), questions, tracking a trade together…
Platinum Membership
Access to everything. Obviously intended for those who want to take the video courses/classes
$257 buys a three-month membership, during which you can take all courses
$67 per month to continue as a platinum member
Note: There will be fewer courses available at launch than at a later date, so be certain to ask what is available
Today I cannot know which courses will be ready
Greg,
Thanks.
See the tab in the Navigation bar (Options for Rookies Premium) for details.
Pricing details are also available.
Mark,
Found this stie today. I am a rookie trying to get up to speed with spreads, focusing on bullish right now, but will need bearish spreads too.
I liked ur article on Smart Options Trading – Earnings Season and very appropriate right now. Problem is that i understood most of what you are talking about, just not experienced in the strategies. do you have any charts that go with the different strategies? I especially want to try the bullish puts strategy for small gains and smaller premiums.
Also like where you keep the chatter to a minimum.
thanx,
Pacificmike
PM,
Thank you.
There is really no difference between bearish and bullish spreads as far as options trading is concerned. If you want to trade with a market bias, there are always alternatives from which you can choose.
I don’t have charts. However, it’s a better learning experience for you to use the risk management program offered by your broker.
Enter a trade. Take a $80 stock as an example. Buy (not with real money, just for making the position) some Jun 70 puts and sell and equal number of Jun 75 puts (same expiration date). That’s selling a put spread and is a bullish trade with limited gains and losses.
Follow the trade. Change the dates and stock prices. Take your time and note how long it takes to earn some profits – or incur losses. That’s better than my supplying one graph or chart. I’d print it here, but I don’t have one. Sorry.
With a bit of patience, you will discover some stocks to trade (based on your bullishness) and you will get a god feel for how far out of the money those puts should be. There is no ‘best’ answer for everyone. A lot of this goes with finding your personal comfort zone.
Regards
Mark,
What is your favorite option strategy?
Thanks.
Stan,
Currently I prefer the iron condor
13 weeks to expiration.
But that is currently. I know it will change as market conditions change.
Mark,
I have finished youir book “A short introduction..” and anxious to try the slling covered calls. My question is about how far in the money one should go. In my self directed IRA most of my stocks have dividends. many of those stock are being touted as the ones to buy in this down economy. If I go too far in the money won’t I risk being assigned too often.
Is there a riule of thumb you use to determine how far in the money youi should go?
Thanks for your time.
Bill
Bill,
Yes, too far ITM and you will be assigned often.
Dividend paying stocks are not so easy to trade for this strategy because they tend to be nonvolatile and thus have smallish premiums
I believe you will have very little choice. You will be forced to write options that are already ITM by no more than a point or two, or go with slightly OTM options.
Please remember that the price of the option is not your potential profit when selling ITM options. It is the TIME Premium in the options, and you will have few alternatives if you want to earn any money. In other words, if the 60-day call for a stock at $53 is $3.30, there is no point going after the 30-cent possible profit when it is most likely you will be assigned and lose the dividend.
No rule of thumb. I just find an option with an acceptable profit potential (time premium). If I cannot find one, then I don’t write the covered call.