80% Wins with Option Spreads

Written by Trader Jack


As we repeatedly state here on www.traders101.com, controlling risk is key to winning long-term inrepparttar stock market. An effective money management strategy isrepparttar 111705 bedrock on which ANY successful trading strategy is built. Having accepted that point, let's take a look at my favorite trading strategy using Options (instruments originally designed solely to control risk!!!).

Most markets spedrepparttar 111706 majority of time channelling sideways, according to long term research at www.traders101.com. A typical security or index might spend 80% ofrepparttar 111707 time between two boundaries that definerepparttar 111708 rangerepparttar 111709 market participants accept as 'fair value. Only rarely do markets breakout upwards or downwards, moving rapidly to a new channel that becomesrepparttar 111710 new 'fair value' (this phenomenon is explained in a little more detail in this article:- http://www.traders101.com/stock-trading-articles/Stock-Trading-with-Market-Profile-20050104.html).

Asrepparttar 111711 market tends to prefer to remain within a channel (usually plus or minus about 5% ofrepparttar 111712 current price almost 90% ofrepparttar 111713 time!) it is possible to construct a really simple yet effective options 'credit spread' that can make you money most ofrepparttar 111714 time while offering you a strictly defined risk. Here's how we do it. Givenrepparttar 111715 figures above, we SELL a CALL at 5% aboverepparttar 111716 current market price. We simultaneously SELL a 'PUT' at 5% belowrepparttar 111717 current market price (a CALL isrepparttar 111718 right, but notrepparttar 111719 obligation, to buy atrepparttar 111720 strike price. A PUT isrepparttar 111721 right but notrepparttar 111722 obligation, to sell atrepparttar 111723 strike price). The nearest options contract isrepparttar 111724 one to go for.

Because we are SELLING these options, we will receive a payment for 'taking onrepparttar 111725 risk'. Onrepparttar 111726 S&P, trading at $250 a point,repparttar 111727 value to us ofrepparttar 111728 CALL andrepparttar 111729 PUT will usually be inrepparttar 111730 region of roughly $600 right now, minus commissions, of course. We acceptrepparttar 111731 RISK ofrepparttar 111732 market moving outside these bands in return forrepparttar 111733 cash, which we can keep IFrepparttar 111734 market stays withinrepparttar 111735 defined bounds. Ifrepparttar 111736 market does break out, losses are potentially unlimited, so what do we do? Hedge our position!

5 Tips On How To Save Money At The Gas Pump

Written by Robert Smith


1. Keep an eye on your gas consumption

The more aware you are ofrepparttar amount of fuel that you userepparttar 111704 more you can do to try to reduce your gas costs.

If you notice that your gas efficiency is decreasing it could be an indicating factor that your car needs servicing.

Make weekly comparisons with your fuel log that you keep in you car to see how much your gas consumption is going up and your mileage per gallon is going down.

If you are finding that you are constantly seeing less and less performance from your car and spending more for gas atrepparttar 111705 fuel pump then you'll know that you need to take action so that you can start seeing a savings in your gas economy rather than a constant deficit.

2. Buy gas from a busy station

Try to buy your gas from a gas station that is consistently busy and therefore has its underground tanks filled on a regular basis.

Gas stations that are slow will have gas that has been sitting in underground tanks for longer periods of time, leading to gas contamination.

This contamination can mean thatrepparttar 111706 gas you are purchasing is less powerful than fresh gas and will decrease your fuel economy.

Try to time your visits to busier gas stations at those busy times but make sure that you're not in a rush to get anywhere.

If you're late for an appointment you may find yourself giving up in frustration if you have to wait to purchase your gas and then find yourself moving over to a gas station that has a higher gas cost forrepparttar 111707 day.

3. Turnrepparttar 111708 nozzle

When you have finished filling up your gas tank try turningrepparttar 111709 nozzle ofrepparttar 111710 hose a full 180 degrees.

This will drain a bit more gas into your tank; in some cases up to an entire half cup that would otherwise be a bonus torepparttar 111711 next gas customer.

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