Tag Archives for " Q&A "

What do you call the options trading strategy in which you buy in-the-money LEAPS and keep selling short-term out-of-the-money calls?

Good question. It’s called a long call diagonal debit spread. I also believe that TastyTrade coined the term ‘poor man’s covered call’. The second name really gets at the heart of what this strategy tries to achieve. By using an in the money LEAPS call you get a very high Delta which simulates the stock with a reduced capital […]

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What should everyone know about Options Trading?

What should everyone know about Options Trading?Winning in options trading is accomplished through practice, lots of practice! If you are a new (or even slightly experienced) options trader, it is important to understand that a series of small trades, where gains are banked immediately, are more valuable to you in the long-run versus a large position that has […]

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What is your favorite options trading strategy and why?

What is Your Favorite Options Trading Strategy And Why?There are many types of options trading strategies that can help you fulfill your trading strategy. Depending on your investment criteria, desired outcome, and market outlook, you can trade calls and puts in different ways to earn income or protect a portfolio position from loss. I tend to look for […]

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