fbpx option education | Option Strategist

option education

About our Volatility Data - Implied Volatility - Historical Volatility

By Lawrence G. McMillan

One of most important things an option trader watches is volatility. The daily Volatility History report in The Strategy Zone offers you the data you need to be a well-prepared option trader: three historical volatility levels, plus implied volatility, and the percentile of implied volatility.

Which Option To Buy: Deciding What Contract Is Best

By Lawrence G. McMillan

There are various trading strategies -- some short-term, some long-term (even buy and hold).  If one decides to use an option to implement a trading strategy, the time horizon of the strategy itself often dictates the general category of option which should be bought -- in-the-money vs. out-of-the-money, near-term vs. long-term, etc.  This statement is true whether one is referring to stock, index, or futures options. 

Trading System & Indicator Review

By Lawrence G. McMillan

With the “fiscal cliff” dominating the news, the media tries to link every market wiggle to what some politician has just said about it.  Meanwhile, there are plenty of real market forces that are influencing the stock market, but those seem to only be of interest to participants who aren’t media addicts – i.e., only a few.  It is our contention that these “real” factors are what is actually driving the market.

Covered Call Writing: Why Cash-Based Put Selling is Superior

By Lawrence G. McMillan

In past issues of The Option Strategist Newsletter, we have stated that we mainly utilize naked put sales rather than covered call writes in its traditional form – even for cash accounts.  Several readers have asked not only how this works, but why we do this.  So let us explain.

Covered Call / Naked Put Sale

Some Random Thoughts On Option Trading: Option Trading Guidelines

By Lawrence G. McMillan

I was recently asked what guidelines I generally follow in my option trading. This is actually a rather thought-provoking question, especially when it regards something one does almost every day. In our feature articles, many useful general strategies have been given, but not assembled all in one place. After giving the matter some thought, it seemed like it might be beneficial to list some of the "rules" that we follow, either consciously or sub-consciously after all these years.

Using The Probability Calculator to Analyze Naked Put-Sales

By Ryan Brennan

Naked put-selling is a very popular and potentially profitable trading strategy, but choosing what puts to sell can sometimes be a guessing game.  McMillan's Probability Calculator Software is a very helpful tool for analyzing potential put-sales since it can estimate the chances of making money in your positions.

Weekly Commentary 8/17/2012

By Lawrence G. McMillan

This market is becoming the ultimate in defying bearish opinion. Since June 1st, $SPX has advanced almost exactly 150 points and is nearly back to the yearly highs -- and therefore at a post-2008 high. Yet, bearish opinion is still rather rampant.   

$SPX remains within the rising trading channel that extends back to early June (see Figure 1).  It is near the top of the channel, so in that sense, it is "overbought."

Equity-only put-call ratios continue to remain on buy signals.

Video Interviews from Vegas Traders Expo

Watch McMillan's Traders Expo educational video interviews on portfolio protection, option strategies for high volatility environments and "90% days" at the money show website.  Click on the links below to watch each video topic.

Important Signals from "90% Days" Video

In this video recorded at the TradersExpo Las Vegas, Lawrence McMillan, founder of McMillan Analysis, explains what he means by a "90% day," and why it can provide important signals for both traders and investors.

Click here to visit MoneyShow.com and watch the video

Released: 11/29/2011 
Focus: STOCKS 

Options for Volatile Markets now available

Options for Volatile Markets:  Managing Volatility and Protecting Against Catastrophic Risk, the follow up to Richard Lehman and Lawrence G. McMillan's New Insights on Covered Call Writing, is finally available on our website.  Considering the current market conditions, the timing couldn't be more appropriate.


Option Strategist
Blog Search

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.