Tag: option trading
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Vertical Spreads, Take them or Leave them?
One of the new buzz words in the option industry is the vertical spread. Although they’ve been around for as long as option trading, popularity of the strategy has been on the rise due to historically challenging market volatility and a more sophisticated trading community. Option buyers look to vertical spreads as a means of…
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Fixed System for Option Trading
Q: What is the Fixed System? A: The Fixed System is the application of economic law in a manner consistent with the scientific method to profit from price changes. Q: What do you mean by scientific method? A: Using observation to establish facts and then logic to reach useful conclusions that follow from the factually…
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Mathematical advantage trading options
Q: You make a big point of saying that you don’t predict the future and that it’s easier to answer the true false question about whether today is the low in the gold market than it is to say which of next year’s 365 days will be the low. I don’t see that you have…
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Mathematical advantage in approach to trading
Q: Is there any mathematical advantage you have with your approach to trading? A: Mathematics is a system of logic. It is not possible to arrive at a valid conclusion if you use fallacious logic. Additionally, your conclusion may be valid, in that it follows from the premises stated, but never the less false because…
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Speculation for profit, selling commodity options
The practice of option selling is a controversial strategy for commodity option traders to partake in. Many brokerage firms outright forbid the practice; others allow it, but there are often strings attached. However, there are a limited number of brokerage services that recognize despite the challenges of option selling, it likely offers the highest long-term…