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Can An Option Trading Strategy Known As 'Maximum Pain Theory' Make You Money?
Monday, May 1, 2023 - 2:50pm | 850The popularity of options trading has exploded in recent years, and some traders believe one strategy revolving around option expiration dates gives them a slight edge in the market. While most retail option traders buy and sell put and call contracts, option writers themselves have a lot to...
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When Near-Expiration Long Positions are Advantageous
Tuesday, June 19, 2012 - 5:21pm | 901The time to expiration, and cost of the option are the two factors every options trader struggles with and has to balance. Close to expiration, it's difficult to get the kind of price movement you need for profits, given offsetting time decay. Far from expiration, option premium is quite high....
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Uncovered Calls: Ten Ways to Take Another Look
Thursday, April 5, 2012 - 11:43am | 948The naked call is probably the highest-risk option strategy of all, right? Not necessarily. I have to admit that for most of the 35 years that I have been trading options, I always associated risk with specific strategies. But recently I have begun questioning this assumption, and I have come to...