Billy Williams
How to Estimate Probability of Earning a Profit from an Options Spread Trade
After I sell and buy my options as outlined in the previous article, I complete my trading plan by consulting a few additional tools to estimate my risk exposure and the probability of making a profit on that trade. Riding the Trade My downside will become apparent within the expiration date of the out-of-the-money (OTM) […]
4 Aspects of Every Options Spread Trade to Choose Carefully to Profit
This article is aimed at helping to choose which direction to take in a spread trade, along with the strategy, the timeframe and the trading vehicle. These steps build upon my previous article, which looked at the Dow Jones Industrial Average (DJIA) chart for the last six months and found indicators point to a bullish […]
How to Execute a Winning Option Spread Position
In have explained in previous articles the main theoretical aspects and strategies of option spread trading but now it is time to put that newfound knowledge into practice. Trading has many similarities with athletics, since both require that you perfect the basics and execute your game plan. Dealing with conditions on the athletic field or […]
Use Trading Plans to Dramatically Increase Your Chances of Profitable Outcomes
The guidelines and the strategies that I introduced in several articles about option spread trading are only half of what you need to be a successful options spread trader. In addition to the technical and analytical knowledge, you need patience and discipline to execute the strategies. One way to make sure you follow all the […]
How to Select Your Best Options Spread Strategy for Each Market Type
In my series on options spread strategy, you have learned by now how to identify the market, chose the investment vehicle and pick the direction that you want to trade. With that information in hand, now pick the strategy that will maximize your profit potential while minimizing risk exposure. Before selecting a specific strategy, you […]
How to Choose the Best Timeframe for Your Option Spread Trades
Identifying trends and selecting the right options spread and timeframe for your trades is crucial to determine whether your trade produces a profit or a loss. Entire books can be written on choosing the correct timeframe for options spread trading. However, I will present in his article just the basic ideas and expand with more […]