As Christmas nears talk of the beloved Santa Claus rally starts to make the rounds on Wall Street. Ole’ Saint Nick not only delivers gifts to good little boys and girls but traders too. The Stock Trader’s Almanac suggests that Santa Claus typically ushers in a brief, positive, and notable market rally during the final … Read more
Lying at the core of any successful options trader’s foundation is a basic understanding of call options and put options. These two vehicles are the fundamental building blocks upon which all option strategies rest. Today, we turn our focus to the first of these two essential tools – the call option. A call option is a contract … Read more
Of all the advantages provided by options trading perhaps none is as coveted by the little guy as the ability to use leverage. When used properly leverage can allow traders to grow their portfolios quicker. However – and this is extremely important to note – its misuse has driven many reckless traders to the poorhouse. … Read more