Welcome to the All Star Options corner of AllStarCharts.com. We’re glad you’ve made it.
We like K.I.S.S. around here: Keep It Simple, Smart-ass. Just like the famous rock band, we’re a little bit punk rock, a little bit irreverent, and a whole lot of no-nonsense, what-you-see-is-what-you-get consistency.
If you’re like us, you’re a big believer in options as a most powerful trading instrument. Without getting lost in the weeds of complexity, options offer us nearly unlimited ways to express our market opinions. Yes, options like anything else are products to be bought and sold, but it’s the way we combine individual calls and puts into spreads where true trading magic happens.
The interplay between two or more individual options contracts offers us a world of opportunity to make (or lose) money in any market environment.
Is the Market too volatile right now and does it make you too afraid to play? Odds favor being a net seller of options premium.
Is the Market too quiet and range-bound for you to profitably scalp intraday or manage short-term swing trades? This might be perfect for delta neutral credit spreads.
Looking to participate in developing trends while limiting your downside in case of a reversal? Debit spreads and risk reversal spreads might appeal to you.
I can go on and on, the point is, options give you options.
Options all by themselves give us uncommon edges and leverage in positions that straight buys/sells in equities or futures simply cannot match. And when you combine these edges with the commonsense technical analysis that you already enjoy here at Allstarcharts, the odds of success compound in your favor.
It’s no wonder more and more active Traders are learning about options, sending options trading volumes to ever higher levels, deepening the pool of liquidity for all market participants, and in turn making it easier for all of us to benefit.
What you’ll find in these pages are descriptions of common options trading spreads and techniques that we employ for our subscribers. You’ll learn the nuts and bolts of how the positions are constructed, how they make or lose money, in what situations we like to employ them, and how we manage the trades once they are on.
We like to keep things as simple as possible over here. We might occasionally use scary words and phrases like skew or volatility curve, but we promise we’ll explain them carefully and simply.
Check back to this module. We’ll be adding additional content to complement our use cases.