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Stock Options Tutorials

An Options Tutorial Should be Free:  There are many websites promoting an Options Tutorial which costs big bucks.  You should be able to find a good Options Tutorial for free.  In fact, you have already landed on a FREE Options Tutorial site.  All you have to is read what we have for you.  It should be a good start.

Stock is to Checkers As Options are to Chess:  Investing in stock is a whole lot easier than investing in options.  Investing in stocks is simple.  Just pick a horse and place your bet.  It is a simple game like playing checkers.  Investing in options is a whole lot more complicated – it is more like playing chess.  Options investing can be a life-long learning experience.  

For those of us who love the extra challenge of option investing, it is worth every minute of time you spend.  The rewards of options investing can be far greater than the possible gains of buying or selling stock, but the risks are also greater.  Options are leveraged investments.  Leverage works both ways – it can provide extraordinary gains as well as extraordinary losses.

Obviously, learning all you can about options is essential before you ever invest with real money.  So, where do you start?

Getting Started with your Free Options Tutorial:  We believe that you best bet would be to read every topic listed at Stock Options 101, beginning at the top.  Once you have an understanding of the basic definitions and concepts, your next step might be to sign up for our free weekly newsletter.

In addition to a new options idea sent to you each week you will get a free options report that puts many of the basic options concepts to work in the real world.

Terry's Tips Stock Options Trading Blog

April 14, 2015

$20 Spread Investment Idea – a Bet on Oil

This week I would like to share an option spread idea which will cost you only $20 to try (plus commission). Of course, it you like the idea, you could buy a hundred or more of them like I did, or you could just get your options toe wet at a cost of a decent lunch (skip lunch and take a walk instead – it could improve both your physical and financial health).

The bet requires you to take a stab at what the price of oil might do in the next few weeks. Your odds of winning are surely better than placing a bet on a fantasy baseball team, and it could be as much fun. Read on.

Terry

$20 Spread Investment Idea – a Bet on Oil

I continue to investigate investment opportunities in USO, both . . .

April 3, 2015

Update on Oil Play Designed to Make 25% in One Month

About a month ago I sent out a strategy we were using to capitalize on the price of oil falling further (as many analysts, including those at Goldman, Citi, and Barclays, were predicting). We set up a small demonstration portfolio which had $2910 to start, and bought calendar spreads at the 18, 17, and 16 strikes when USO was trading at $18.45.

When the price of oil did retreat further, USO fell to about $17, and we sold our calendar spreads at the 17 and 18 strikes and replaced them with calendar spreads at the 15 and 14 strikes. Since the strike prices of calendar spreads is what determines whether you are bullish or bearish on the stock, when we had all our calendar spreads at strikes below the stock price, we were extremely bearish.

Then the stock turned around and headed higher, taking away the gains we had made, and we were right back to where we started. Today we made a new start, and I would like to share our thinking at this time.

Terry

Update on Oil Play Designed to Make 25% in One Month

USO is an Exchange Traded Product (ETP) which is highly . . .

March 23, 2015

Trading Options Can be a Lifetime Learning Experience

Last week was a good one for the market. SPY rose 2.2%, a wonderful week. The actual options portfolios we carry out at Terry’s Tips had a stellar week as well. Nine of our ten portfolios gained at least 5%, and 3 of them gained over 33% in a single week.

Nike (NKE) announced blow-out earnings and the stock rose 6.4%. Our portfolio that trades NKE options gained 13.5%, double the increase in the stock price. This was far less than we usually do compared to stock price changes, however.

We have proved over and over that if you can find a stock that will increase if value, you can usually make 3 or 4 or more times as much with an options strategy as you could by simply buying the stock.

Of course, buying options is not quite so simple as buying stock. To do it right requires gaining some understanding that most people just don’t have the energy or willpower to learn.

Terry

Trading Options Can be a Lifetime Learning Experience

If the truth be known, investing in stocks is pretty much like playing checkers. Any . . .

Making 36%

Making 36% – A Duffer's Guide to Breaking Par in the Market Every Year in Good Years and Bad

This book may not improve your golf game, but it might change your financial situation so that you will have more time for the greens and fairways (and sometimes the woods).

Learn why Dr. Allen believes that the 10K Strategy is less risky than owning stocks or mutual funds, and why it is especially appropriate for your IRA.

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