Category: Trading & Options

Trading credit spreads gives me a defined edge and it allows me to choose my own probability of success. For example, take the hottest stock on the planet - Apple (NASDAQ: AAPL).

With a bailout likely coming for Greece, this ETF might have some big upside opportunity.

As an options trader I am often asked about my favorite options strategy for producing income. I have been bombarded with questions from investors for years about how to trade small cap stocks for income using options.

Even if you missed out on the recent rally, you can still generate short-term profits by doing one simple task: listening to stock advice from our own Jason Cimpl.

Most traders today still use options as pure speculation. They don't realize the true potential of options. They don't want to actually think about using an options strategy to gain a true statistical advantage.

So will the run continue?  After all, recent economic data is pointing toward a stronger U.S economy.  And the employment picture brightened considerably in January.

As I always say, it's all about the probabilities.

How can you determine trend? And once you determine what the trend is, how can you profit from that conclusion?

Apply all of these principles and you will be well on your way to long-term success. It's not easy, it shouldn't be, but I can tell you that it is worth the effort.

Many professional options traders look for extremes in volatility and trade accordingly.