Options Bootcamp #35 – Lessons from the Trading Floor

Published on: Nov 27 2013 by John Critchley

Basic Training: Lessons from the Trading Floor

  • Paper flow rules all – Go with the flow! Being obstinate and refusing to adjust to changing market conditions will only cost you money.
  • Don’t step in front of the train!
  • When in doubt, palms out!!
  • There is such a thing as an upside crash.
  • Calls are puts and puts are calls.

Mail Call:  Schooling traders, one question at a time.

  • Question from George: Why were puts so expensive when TWTR options launched?
  • Question from Niles F., Montgomery, AL –  I saw an article recently touting a “synthetic covered call strategy” that essentially involved buying an ITM call and selling an OTM call against it. It was really just a vertical call spread. What am I missing? How is this a synthetic covered call?
  • Question from Mr. Gif – Great show on volatility skew. What do you guys think of this piece? Should I, as an investor, avoid these volatility ETFs?
  • Question from Buckeye – A question from John – Can I buy a stock on margin then write covered calls against it? Or does a broker like SogoTrade remove the 50% margin and make you pay the full price for the stock when you sell the calls?

You also can download the podcast via:

Itunes http://itunes.apple.com/us/podcast/options-boot-camp/id514144367

Stitcher: http://stitcher.com/listen.php?sid=971812

 

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Play

Sorry, the comment form is closed at this time.

Sorry, the comment form is closed at this time.