Is there a pattern to your trades? Anyone trading options knows how little effort it takes to build up a healthy volume of transactions. But you should be aware of one rule that could inhibit your ability to trade too often in the same option and in the same stock. In the past, day trading… [READ MORE]

Most swing traders use long stock for expected upswings; and either short stock for downswings or just stay out because shorting is high-risk. Two things are problematical with this idea. First, the risk should not be ignored; and second, you miss half of the swing opportunities by avoiding going short. There is a solution, and… [READ MORE]

When price signals are exceptionally strong and indicate likely movement in one direction, it makes sense to make use of an aggressive directional trade. Two of these are the strap and the strip. The strap combines two long calls and one long put, favoring advancing price. The long put sets up potential profits if price… [READ MORE]

Options traders rely on a variety of reversal signals to time entry and exit. These may include price, volume, moving average and momentum indicators. Two of the strongest candlestick signals are three white soldiers and three black crows. These imaginatively named signals each contain three consecutive days: The requirements for a legitimate signal are specific.… [READ MORE]