Everyone has heard that writing naked or uncovered options is extremely high risk. This is not necessarily true. The covered call is risky because a stock’s value can fall below the net basis (cost of stock less premium received for the call). But when it comes to the naked put, it’s a different story. The… [READ MORE]

Options traders face an unending dilemma: During a long-term dynamic trend, how do you know when to open a new position, keep the current position open, or close and take profits?< Many traders get out of trades at the wrong time. It may be wise to take profits when they are available, especially if based… [READ MORE]

Timing of options trades is elusive, especially during dynamic price trends. There is one technique, however, that reliably and consistently allows you to time trades. The Bollinger Band Snaps (BBS) signal occurs at very precise moments during a bullish or bearish trend, and vastly improves timing of both entry and exit. The chart of Chipotle… [READ MORE]