For anyone wanting to maximize timing for short options, trading on Thursday or Friday for the following week’s expirations (7 or 8 days away) is a good timing strategy. According to Jeff Augen in his book, “Trading Options at Expiration” those options expiring in one week will lose (on average) 34% of remaining time value… [READ MORE]

So many traders start out with a sensible plan, only to abandon it because of the way the markets move. This abandonment of a smart plan invariably leads to potentially large net losses. Here are five thoughts about how underlying price changes can be timed and exploited: Pick long calls or short puts after the… [READ MORE]

Selling puts is comparable to covered calls in terms of market risk, but with some notable differences. Rolling flexibility. The short put can be rolled to any later-expiring strike without consequence. In comparison, rolling a covered call has to take into account the potential of exercise and resulting capital loss on the underlying. Dividends Stock ownership includes… [READ MORE]