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Kerry W. Given

Kerry W. Given writes and could be found in the following categories: ALL Articles - Options Trading - Trading System

Below you may see the list of Kerry W. Given articles from ALL Articles

• Option Expiration and Exercise - Examples of common errors include being surprised that one is unable to close an index option position on the Friday before expiration, or being surprised by an unhedged option exercise during expiration.
• Put Time On Your Side - Many conservative income generation trading strategies depend on the time decay inherent in options pricing. When I establish an iron condor well OTM (out of the money), I am selling option spreads and expecting those spreads to slowly lose value as the underlying stock or index trades within a channel.
• The Dangerous Iron Condor - Placing iron condor spreads on the broad market indexes is a relatively conservative, non-directional trading strategy that may be used for consistent income generation. This strategy profits as long as the index trades within the channel formed by the two spread positions. It is best used during sideways or slowly trending markets.
• Facts and Fallacies About Risk/Reward Ratios - When someone tells you an investment will return 300%, but doesn't tell you the probability of success, you are missing critical information necessary to make a decision about that investment.
• Vertical Spreads and Implied Volatility - It is commonly taught that one should establish a credit spread when placing a trade with high implied volatility (IV) options and a debit spread with low IV options. But the previous example illustrated identical returns for the credit and debit spreads.

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