http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/http://www.fxstreet.com/education/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-02-08.htmlMany times the issue comes up as to whether calls and puts are truly equal. Rather than simply giving the answer, several points will be presented in order to lead the reader to draw their own conclusion. First, let us look at the option chain, Figure 1, and observe a simple issue. If we look at the options that are out-of-the-money, for instance two steps, and assume that indeed the calls are as equally priced as the puts, what do we see? The underlying selected (HD = Home Depot) was chosenWed, 08 Feb 2012 06:28:58 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-02-08.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-02-01.htmlRecently, I had a trader show me his options trades to evaluate and give him some feedback. As we looked through the pages of printed material from his brokerage company, I pointed out to him that his option trades did not have some very essential data: The price of the underlying at the entry and exit. Without those rudiments, an evaluation is almost pointless. Options are derivatives; they move based on the underlying's price action. The premium also changes its value based on the increaseWed, 01 Feb 2012 06:18:00 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-02-01.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-25.htmlIn this article, I will compare two trades; one mine, and one from a trader who shared his trade with me asking for my take on it. The trades were very similar in a sense that the underlying products were optionable and they both had weekly options listed. They also both had individual strike prices with very little or no open interest and volume. Should we even be considering trades on options like these that have such low liquidity? Weekly WMB trade January 2012 Week A The first trade was onWed, 25 Jan 2012 05:55:53 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-25.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-18.htmlThis article shall briefly look at the difference between a Bear Call spread and Bear Put spread. To learn the intricacy of verticals, please review our article  on that topic that was published previously. A Bear Put and Bear Call are both bearish vertical spreads. The first one is a debit spread, and the latter one is a credit spread. In which case would one make more sense to trade over the other? It depends on the implied volatility (IV). If the IV is high then it is better to be aWed, 18 Jan 2012 06:19:33 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-18.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-11.htmlIn all of our OTA courses, regardless of which asset class, we teach the importance of record keeping. For those faithful enough to do this, after several years of trading and recording both winners and losers, you will have a valuable bank of data. Based on that data bank, a trader could make some very interesting observations about the market as well as about one's performance, such as in which quarter over the years does a trader tend to perform the best and which quarter the worst. ThisWed, 11 Jan 2012 06:27:41 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-11.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-04.htmlMany option traders don't have a full grasp of the understanding of Level II. This article is aimed at demystifying options' LEVEL II. An appropriate way to approach our scrutiny would be in the academic spirit. Let us turn to the investopedia.com definition of Level II Quotes. "Level II is essentially the order book... When orders are placed, they are placed through many different market makers and other market participants. Level II shows the best bid and ask prices from each of theseWed, 04 Jan 2012 05:47:43 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2012-01-04.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-28.htmlIn light of last week's article, I tend to look at the volume of individual strike prices on Thursday morning. Every Thursday, the new weekly options are listed; with the exception once a month when the regular monthly options act as weeklies with only seven days left to expiry. Based on the dinosaur footprints I see, I create my short-term bias. Let me lay down what exactly I am looking at and why.Wed, 28 Dec 2011 14:41:51 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-28.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-21.htmlRecently, the market has been very volatile, and as I was teaching an Options class in Philadelphia, Pennsylvania, we chose to look at the QQQ. This exchange traded fund that tracks the NASDAQ is one of the most liquid ETFs and this liquidity also reflects itself in the options volume and open interest. As I was explaining how to look up the option volume on TradeStation's Time and Sales (T & S) window for individual option strikes, we noticed something extraordinary. Please refer to theWed, 21 Dec 2011 05:33:42 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-21.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-14.htmlThis article is a sequel to the last week's article  that explained the basic concept of LEAPS (Long-term Equity AnticiPation Securities). It focuses on two specifics that were not discussed in part one. Namely they are: The implied volatility and directional move. PART I: Implied Volatility The previous article displayed the figure below showing the specifics of two LEAPS that are expiring a year apart. The values listed in Figure 1 are: The contract's Strike Prices, Intrinsic Value,Wed, 14 Dec 2011 06:04:58 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-14.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-07.htmlThis article will explain the concept of LEAPS (Long-term Equity AnticiPation Securities) which is often puzzling to novice option traders. An appropriate way to commence our scrutiny is simply by going to the CBOE (Chicago Board of Option Exchange) website and using their facts; after all, it was the CBOE who first listed LEAPS back in 1990. According to their webpage, LEAPS are long-term options contracts that can be maintained up to three years. However, it is also possible to define LEAPSWed, 07 Dec 2011 06:02:05 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-12-07.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-30.htmlIn a follow-up to my article from October 4, 2011 , I will give you another example of a trade in which Position Sizing was done based on the Max Loss of a trade. We will follow an Iron Condor from its inception until its termination. The appropriate systematic steps, already well-known to Online Trading Academy readers, were rigorously followed. The first three steps were Fundamental Analysis (FA), Technical Analysis (TA), and checking Implied Volatility (IV). The underlying selected was GLD,Wed, 30 Nov 2011 06:26:41 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-30.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-22.htmlThis article, the first of two, will address the relationship between implied volatility (IV) and the movement of the underlying. Specifically, it will look at the positively correlated delta of a long call. Very often it happens that an option trader purchases a long call that is in the money or at the money and the underlying goes in the correct direction, yet they still lose money on the call. Most of the time, this is due to the fact that the time has decayed, or the implied volatility hasTue, 22 Nov 2011 12:39:15 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-22.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-15.htmlSometimes it appears that a short vertical call could be fixed by going long the stock. This article is going to examine both advantages and disadvantages of this fix. By the end of this article, a trader will see that it may be better to use an alert and apply technical analysis to the underlying and decide if it is just time to simply close the spread rather than attempting to repair it with a long stock purchase. For instance, if the QQQ is trading at 58, and technically it appears to beTue, 15 Nov 2011 12:32:26 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-15.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-08.htmlThe purpose of this newsletter will be to explain the two different purposes behind selling cash secured puts. TWO INTENTS Writing puts can be done with one of two intents: Purely investing or purely trading. The investor who sells a put truly wants to get assigned the stock at a predetermined price for a discount. The trader wants to sell the puts strictly for obtaining the premium from the sale, and not necessarily the stock.Tue, 08 Nov 2011 12:34:12 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-08.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-01.htmlThis article looks at the same put strike for a long put and also a short put. First, focus will be placed on the long put's Delta. Then the same put strike price that was used for the long will be analyzed from the perspective of the short put. Delta has multiple levels of meaning. One of the most commonly quoted definitions is that Delta is a measure of the change in an option's premium with respect to a change in the price of the underlying. The Delta of a long call and also of a short putTue, 01 Nov 2011 11:35:40 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-11-01.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-25.htmlIn one of my most recent classes in New Jersey, we were comparing option strategies. Namely, we were talking about a cash secured put versus a Bull Put spread. The underlying issue which we selected for our examination was the exchange traded fund that tracks the 20 year US Treasuries. In order to clearly show how the class came to the conclusion that one is better than the other due to the rate of return aspect, we will utilize systematic steps, which follow:Tue, 25 Oct 2011 11:51:55 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-25.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-18.htmlIn order to support the point that there are more possible opportunities to benefit from selling options rather than buying them, this article will look into the intricacies of option buying and selling. For simplicity's sake, this discussion will focus only on puts. Hence, the logical division of this newsletter is two-fold: The first part about a long put, and the second about a short put. PART I: +p (Put Buying) Occasionally, I am asked if the idea of buying a put – period – is a good idea.Tue, 18 Oct 2011 11:52:27 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-18.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-11.htmlIn this newsletter, we will examine a couple of option trading cases that only use $200 seed capital. Both option strategies will be done on the same underlying and with the same type of vertical credit spread. The only variation will be the width of the spreads. Going through this type of comparison is a practical way to help the novice trader begin to see some of the many nuances that make up option trading. PART I: A Single Point Wide Short Vertical As an example, we are going to select aTue, 11 Oct 2011 12:16:25 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-11.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-04.htmlOne of the questions that often comes up during the Online Trading Academy Options course is about risk management. This article will use a couple of examples in which Position Sizing can be done by using the Max Loss of a spread trade. Certainly, Position Sizing by Max Loss is not the only way of risk management, but it is the main focus of this article. As always, when trading, there are several steps that a trader should go through when placing an option trade. In the past, I have writtenTue, 04 Oct 2011 12:48:50 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-10-04.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-27.htmlThis article is aimed at answering the question of how to properly select a candidate for a cash secured put. We are going to first look at two different underlying issues and then we will highlight the reasons why one is better than the other. This article builds on the assumption that the readers are already familiar with the basic concepts behind using cash secured puts. Part 1 Cash Secured Put on AMZN @ 239.30 Starting with the chart above, on Friday 09-16-2011, AMZN closed at 239.30 andTue, 27 Sep 2011 11:34:53 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-27.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-20.htmlOne of the e-mails that came into my mailbox recently was quite interesting: Hi Josip, I was watching last Friday on the CNBC Option Hour and there were a couple of trades that were mentioned that I did not understand. Actually, there were three option trades that were discussed, but I do not care about the one on JP Morgan. Anyhow, the one on ORCL was really confusing. It involved the sale of a Dec 22 put and a purchase of 27/30 Dec call spread. I wrote the numbers down: 1.05 for the put, theTue, 20 Sep 2011 11:50:32 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-20.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-13.htmlRecently, I was teaching an options class at Online Trading Academy Dubai and a trader had applied a credit spread strategy that we had just covered in the class, live in the market. Sometimes, the worst thing that can take place for a new trader is to have a string of winners. Those winners can send out the wrong message that option trading is easy, and no further education is needed. In the case of this Dubai student, the experience was exactly the opposite. He had taken a couple of tradesTue, 13 Sep 2011 11:51:16 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-13.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-07.html(Disclaimer: this article might require a couple of rereads before it sinks in completely. But the information is vital to know.) A question that is often raised in the class when the topic of verticals is being taught is: When is the best time to do credit spreads versus debit spreads? The correct answer is simple: When the (IV) implied volatility is high, do credit spreads, and when the IV is low or within a lower range, do debits. Although that is the correct answer there is more to it thanWed, 07 Sep 2011 11:44:22 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-09-07.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-30.htmlWhen a trade goes wrong, a trader is presented with two choices: The trader could take responsibility for the trade going against their initial plan, or the trader could attempt to pass the responsibility onto someone else. The usual complaints can go to any of the following: The platform did not work properly, the stock market is unstable or the individual stock had unexpected news come out without any warning. A professional trader must be fully accountable for every single trade that isTue, 30 Aug 2011 11:54:42 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-30.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-23.htmlIs having a mental trading plan good enough? This article will argue that it is better to have a WRITTEN trading plan than to just have one in your head. The way I handle my trades is quite primitive. I do not use fancy electronic screen prints because after a while, there are tons of electronic files left to look at; I simply use index cards. On the front side, I record my entry and on the back, the lesson learned after exiting. I suggest that novice option traders go out and buy a deck of 3Tue, 23 Aug 2011 11:37:42 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-23.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-16.htmlThis article explores the selling of premium that option traders should be considering due to the increase in volatility and overpriced premium. In our option classes, we teach students to be premium sellers when the IV (implied volatility) is high. Most of the time when we go through various examples, we find the IV to be somewhere between the extreme high or extreme low. Due to the recent crash caused by the S&P downgrade of the US and the temporary bounce back caused by Ben B. and theTue, 16 Aug 2011 11:36:30 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-16.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-09.htmlEvery once in a while, I write an article answering various student questions; this is one such newsletter. I am starting with the most recent questions that came up right after the publication of the TradeStation customization article from July 26, Customizing Your Ride – How to Change that Option Chain. Some of the answers below are truly a matter of personal preference. Email 1: Legging In Hello Josip, I have some questions: In the article on TradeStation customization, you mention that youTue, 09 Aug 2011 11:38:36 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-09.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-02.htmlThe aim of this article is to explain how the option premium of an ITM long call changes as the underlying moves on the price chart. There will be three points in time that we will examine. We will use DIA, the Dow Jones Industrial Average Exchange Traded Fund, for our example. At the first point in time that we will use, the Dow was trading at 126.50 and a one step in the money long August call was selected. PART I: Friday close 07/08/2011 On July 8th, after the Dow (and the DIA) had been inTue, 02 Aug 2011 12:23:10 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-08-02.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-26.htmlEver since the publication of the last article, How to Read that Option Chain , I have received emails asking how to change the font size and color on my TradeStation OptionStation Analysis window. Of course, you can call TradeStation's technical support line at (800)-822-0512 and tell them you are an Online Trading Academy student and they will be happy to help. Although I seldom write on the topic of platform functionality, the frequency of the same question compels me to oblige. First ofTue, 26 Jul 2011 11:28:59 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-26.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-19.htmlRecently, I taught a class in Houston, Texas, and many of the students had a hard time understanding what they should be actually focusing on when looking at an option chain. In class, we use the TradeStation Option Analysis window which displays the option chain. Many of the students expressed that they felt intimidated when looking at this TradeStation window. The figure below shows the default setting that loads up to an empty workspace when using the TradeStation Option Analysis window.Tue, 19 Jul 2011 11:47:11 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-19.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-12.htmlThis article is a continuation of the previous two - Which Way is Next? and Which Way is Next: Part II? - which address the topic of current market direction in relationship to its near future. As usual, first we look at the Dow and its leading components. Below is the TradeStation Radar with these components. The Radar window is linked with a small green square to the Chart Analysis window. By setting the correct time frame, for instance weekly or daily, you can quickly get a feel for whatTue, 12 Jul 2011 12:27:20 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-12.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-06.htmlIn my most recent class in Northridge, CA, we were looking at the market as it was stuck in a channel and we were considering placing a trade. After checking the current I.V. reading, we noticed the implied volatility was in the middle of its range. Figure 1 below lists the specifics.Wed, 06 Jul 2011 11:46:45 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-06.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-28.htmlhis article will examine the specifics of a butterfly trade that one of our students had recently taken without truly knowing what he did. This is what he wrote to me: Hi Josip, I have placed a trade that I never properly understood. It is a put butterfly and it seems to me that I have made some money on it, I just do not know how and why. Especially because at the exit, I didn't know how to take it off and the broker closed it for me as a back ratio spread. I have no clue how I ended up withTue, 28 Jun 2011 11:35:37 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-28.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-21.htmlIn my article two weeks ago, I wrote about the new Alpha options. Yet, I have found out while teaching an Options class in Stamford, CT, that a lot of students are still struggling with the concept of just plain options. So, though this may be rudimentary for many readers, this article will focus on comparing the plain vanilla call versus the vertical debit spread. PART I: A Long Call Let us start with the concept of plain vanilla options; there are many different and exotic names used toTue, 21 Jun 2011 11:38:14 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-21.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-14.htmlOften I am asked to explain how to set realistic expectations for my targets, rather than having overly enthusiastic, optimistic, and somewhat unrealistic targets. One easy answer would be: Just check the readings of the ATR (Average True Range) on the chart for the time frame that you are planning to trade. I personally prefer to use the current IV (Implied Volatility) for the simple reasons that it is more accurate and conservative. This article will be divided into two parts. In the firstTue, 14 Jun 2011 11:38:38 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-14.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-07.htmlThere are new options out there called NASDAQ OMX Alpha Indexes Options. This newsletter will explain some of the aspects of this "New Kid on the Block" for options. This article is not a recommendation to buy or sell of any of these products. The information presented here is for educational purposes only. The accuracy of what is discussed can be verified on the official NASDAQ website, as well as Investopedia.com. Prior to explaining what the new NASDAQ OMX Alpha Index options are, we shouldTue, 07 Jun 2011 12:02:25 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-07.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-01.htmlAfter addressing how to determine directional bias in last week's article, Which Way is Next? , I received some e-mails asking whether the stocks and sector tracking Exchange Traded Funds (ETFs) discussed in the article were tradable with options. In short, the answer is: Not necessarily. The article taught that in order to determine the directional bias of the SPY, DIA, and QQQ, you use their various underlying instruments (stocks in the case of the DIA & QQQ, sector tracking ETFs for theWed, 01 Jun 2011 11:46:59 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-06-01.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-05-24.htmlOne of the questions that often comes up to us instructors at Online Trading Academy is the one about the future direction of the market. In most of my options classes, when that topic is addressed, I turn to technical analysis for help. This entire newsletter will focus on providing a clear answer to what I look at and why I look at it when selecting my market bias. There will be three sections with a focus on three different indices. Where is the Dow going? When determining my directionalTue, 24 May 2011 11:33:13 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-05-24.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-05-17.htmlIn this article, I will compare a vertical debit spread, known as the Bear Put Spread, with a vertical credit spread or Bear Call Spread. Keep in mind that the buying of a debit spread ideally should be done when the (I.V.) implied volatility is low, while the selling of a credit spread is done when the volatility is high or in the higher range. For simplicity's sake, I am taking I.V. out of the discussion for these two examples. Bear Call Spread For our Bear Call Spread example, we are buyingTue, 17 May 2011 11:38:46 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-05-17.htmlhttp://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-05-10.htmlOne of the option strategies that we teach in our live option course, specifically on Day 4, is known as a Long Synthetic. The Long Synthetic strategy creates the same effect as holding the underlying asset but ties up less capital as compared to buying the underlying outright. Although this option strategy will make us virtually the same, penny for penny, as owning the underlying, it does not allow ownership voting rights or receive any dividend payouts. This newsletter will zoom in only onTue, 10 May 2011 11:36:16 GMThttp://www.fxstreet.com/education/related-markets/contact@tradingacademy.com (Online Trading Academy)http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-05-10.html