Category: Tutorials
Legging into your trade positions
INTRODUCTION
Let us consider a put vertical spread structure. It is formed by simultaneously selling a put and buying a put below the strike price of the put. The same structure can be created...
Scaling into your trades
WHAT DOES IT MEAN TO SCALE INTO YOUR POSITIONS?
Imagine you are bullish on a stock and assume you have set aside $2000 capital to purchase 10 contracts of long calls. However, instead of deploying...
Changing option structure in predefined scans
One of the prominent features in SamurAI are the predefined screens. The screens (over 20 of them) allow you find trade ideas in one click in different market conditions. We’ve created the screens...
The edge of Mean Reversion Trades
Mean Reversion Trades
To be a profitable trader, you need to trade with an edge. What is a trading edge? In short, it is the opportunities or patterns that exist in the market that has a high...
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How to trade when a stock is over extended
As traders we are constantly on the look to understand the market's tendency and how to act on it. One way is by examining how stocks behave after they are oversold. We believe this is an essential...
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Picking the perfect covered call strike
Covered call is one of the most popular options strategies. Last week we mentioned that option-sellers have an edge when trading, and we talked a little bit about the edges in covered calls - They...
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When to exercise call options early
We often use strategies that involve call options around dividend ex-date. Often times we sell calls and they might get exercised (for example our dividend capture strategies) and other times we...
The markets plunge - what does Vix tell us?
(small update: The Vix gave more than 30% and faster than we projected. If you took our idea it might be good time to take some profits off the table)
Indeed an historical event, an event that can...
How To Choose A Covered Call Using A Predefined Scanner ($MOS Example)
In this article, we’re going to see how to choose an option for generating income. The strategy we’ll use is covered calls, which means we own a stock or will buy it then sell call options on the...
Cover Call Strategy for Micron ($MU)
On the doorstep of the Q4, U.S. stocks continue to trade at elevated levels. October is generally remembered as a volatile month, but over the last 20-years the S&P 500 index has returned 1.9% on...