A lot of options traders start their search the same way:
The logic seems simple.
High implied volatility means expensive options. Expensive options mean more premium. More premium means more potential income.
But that way of thinking s
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What's your win rate?
It's one of the first statistics traders like to talk about.
70% sounds good.
80% sounds even better.
90% sounds incredible.
But there's a problem.
A high win rate doesn't necessarily mean you're making money.
In fact, some of the most dangerous trading strategies can
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The poor man's covered call β the PMCC β is one of those strategies that sounds like a shortcut.
It isn't.
It's a real strategy with real rules. Trade it right, and you get the income profile of a covered call for about 20% of the capital. Trade it wrong, and you blow up faster than you would ha...
A ZEBRA can give a trader stock-like directional exposure without requiring the same capital commitment or leaving the downside as open-ended as owning 100 shares.
But it is not a shortcut.
It is not a free stock replacement.
And it is not a way to ignore risk because the position has a defined
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A short strangle can collect premium from both sides of an options market, but it also creates risk on both sides of the underlying price.
You sell an out-of-the-money put.
You sell an out-of-the-money call.
You collect premium from both contracts.
If the underlying stays between the two strik
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LEAP options give traders more time than standard short-dated options, but more time does not make a trade automatically safer.
A LEAP can have an expiration date one year or more into the future.
That longer time horizon can reduce the immediate pressure of time decay.
It can give a bullish or
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Options can give traders exposure to stock movement with less upfront capital than buying 100 shares outright.
That is one reason options are attractive.
You may be able to buy a call option for a fraction of the cost of purchasing 100 shares.
You may be able to buy a put option to protect stoc
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