The Options Insider - Your Inside Source for Options Information, Options Education, & Options Trading.

Basic Training: Today we're going to dive into spreads. Spreads are really the defining characteristics of options. What is a spread? Why would you do a spread vs. trading an option outright? Max value of a spread is the differential between the two strike prices. Long call spread, aka vertical, examples with everyone's favorite stock XYZ. Spreads have components called legs - they are the individual parts of the spread Roll Call: Mark and Dan sit down with Christopher Newman, the Zecco Trading Vice President of Customer Service, and run him through a few questions. Mail Call: Answering listener questions. Read >

Europe is putting big pressure on the US equity market. In fact the close to close activity looks much more benign I think than the intraday selling. Read >

We all know options are derivatives, and their prices are derived from the underlying stock, index, or ETF. But with other factors at work – implied volatility, time decay, etc. – how can you know how much an option is going to move with respect to said underlying? Very simple – check out its delta. Read >

A lot of struggling traders will try to switch from trading stocks to trading another asset class. They do this because they feel that if they cannot successfully trade stocks, they may have better luck with trading forex, options, or futures. Unfortunately, they find that they can lose just as much money or even more by trading those assets instead of stocks. Read >

So often in the trading world, I hear people talk about where price is likely to turn next, where is the next key supply or demand level, where is the next big market move going to originate from, and so on. Read >

Basic Training: Turning to the dark side! It's time to learn how to sell options. Why sell options? Time decay and theta. Collecting theta, instead of paying theta, turning an enemy into a powerful ally. Options Drills: The Covered Call Roll Call: Mark and Dan sit down with this Zecco Trading's President Michael Feser, to discuss Zecco in 2012. Given the difficulty for new retail traders in the last year, what can we see now, a full quarter into the new year? What issues may investors need to be cognizant of before coming into the market this year? Explaining the success of Zecco Share. Mail Call: Facebook questions from the Zecco community. Read >

When using supply and demand to identify turning points in a market, a question that comes up often is, "How far back should I look for a supply and demand level?" Read >

Post-earning trade is one of my favorite times for a stock. The news is really is inconsequential except when put against the underlying movement. Read >

I recently wrote about a powerful concept in trading which I have now begun to refer to as "The Silence Between the Notes". In other words, I am referencing the times when FX traders decide to not take a trade, rather than being too eager to click buttons. Read >

There are a lot of gaps on stocks listed in the markets. This is partially due to the nature of how the opening prices are determined. Read >

I want to go over a trade we identified in our live All Asset Mastery XLT (all asset class trading room) and walk you through all the deciding factors that led to a quality trading opportunity. Read >