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Larry Gaines traded professionally for over 3 decades before founding Power Cycle Trading to teach well over 1,000,000 traders now what he learned during his trading career. During his tenure as Executive Vice President, Gaines ran one of the largest volume oil trading groups in the world where he traded and managed billions of dollars worth of oil, foreign exchange, futures, and options. They often traded over a billion dollars of securities in a single day.
Later, Larry consulted with hedge funds and set up an over the counter crude oil options brokerage desk for the world’s largest privately-owned oil brokerage firm.
After “retiring” early in his 50’s, Gaines fulfilled a long awaited desire to teach others how to trade options and securities. No private jets and pie in the sky promises here, just decades of real trading experience to help you trade better with less risk.
Selling covered calls can generate income for two to four times or more the income received from stock dividends. Most investors, however, have the bulk of their retirement savings in some type of retirement account. Can you sell covered calls in a retirement account? You can sell covered calls
The Option Butterfly Spread is one of the best, if not the very best, option trading strategies. Here is the basic option butterfly spread trade setup: First, construct a vertical debit spread consisting of a bull call spread and a bear put spread. Next, construct a vertical credit spread
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Trading on margin is a vital part of any day trading strategy and many want to know whether they should consider forex vs options trading. Forex traders bet on the rise and fall of international currencies, while options traders tend to focus on stocks or commodities. When it comes to
Why Are Some Options So Expensive? Plenty of people have begun trading options in recent years, and it can be an incredibly lucrative alternative to trading stocks when done right. But, there is an abundance of complexities around option pricing when compared to the simplicity to the pricing of other
How to Take Advantage of an IV Crush Implied volatility is the expected volatility of an underlying asset over time. It is one of the key data points for pricing options and it will be a big factor in deciding the profitability of your options trades. One of the most important
When you first trade options, it can seem like you’ll need to somehow connect with the buyer or seller on the other end of the option contract when the option expires. This can be a particular concern when the underlying security is trading “near the money”. Do stock options automatically
Trading holds a certain allure to many investors. But is it better to simply invest or trade? Investment goals, available time, allocated capital, personality and overall portfolio design are factors to determine if it’s better to invest or trade. Growth Vs Income Are you investing for growth or income? If
Most things in life have come with a mix of good and bad. Similarly, there are many pros and cons when it comes to option trading. The pros of option trading include position flexibility, income generation, lower capital, asset class diversity, risk management, numerous strategies, situation, data and market
When used correctly, options significantly enhance investment performance. Options trading does, however, require some education. Is option trading worth it given the complexities? Options can be an excellent investment vehicle to capitalize on short-term price movements making them a worthwhile strategy. Advanced options trading combines the leverage benefit that
Exchange-traded funds – ETFs – have been an increasingly popular investment vehicle ever since their introduction in U.S. financial markets in 1993. They can be used to invest in stocks, bonds, and most other investments, including commodities. Trading Options on Commodity ETFs In the past, investing in commodities was mostly limited to the
This article will explore how to get set up as a trader. Getting started as a trader may seem complicated. You may wonder what type of equipment you need, how much capital to start with, and what information you’ll need to set up a brokerage account. We’ll go over all
This article will explain how to reduce trading fees in options and stock trading. Let’s say you’ve finally made it. You’ve stayed disciplined, stuck to a trading plan, and managed to create a profitable trading business. But trading fees are eating into your trades, even your losing trades, adding insult
Generally, the last opportunity to trade a monthly options contract is shortly after market close on the third Friday of the expiration month. This can be a little confusing, however, since the actual time that that an option expires is the next day (Saturday). The expiration time and expiration date
Hedging a stock portfolio can be a great way to preserve dividend income while minimizing losses from a downturn in the market. In this post, you’ll get the 7 steps to hedge stocks with futures, including how much of your stocks you should hedge, how to pick the right contracts,
One of the most important things to understand about options before trading them is that options lose value every day. Do options lose value over the weekend? Options lose value over the weekend just like they do on other days. Long weekends add even another day of depreciation due to
Do you ever feel like emotions sabotage your trades? If you’re wondering how to control your mind when trading, keep reading. Even the best trading strategy can be ruined when fear, greed, or other emotions creep into your mind and take over. But there are ways to keep these trading
When pairs trading, we trade a pair of securities that are correlated with each other by taking a long position on one of them and a short position on the other. One of the best things about pairs trading is that risk is lowered from having a pair
What if you had a way to predict stock prices? You can actually use an options technique for stock price prediction. In this article, we explore how to use this powerful technique as we create a plan of action for a trade we want to make. This technique makes use
It stands to reason that selling options with a high option premium will generate the most income. But which stocks have the highest option premium? And what exactly defines an option premium? As of this writing, the list of stocks with the highest option premium includes Mercadolibre, Netflix, Tesla, Shopify,
You may have heard that options traders should pay attention to stocks with a high short interest ratio. But what is considered a high short interest ratio as opposed to an average or low one? Definitions vary, but a short interest as a percentage of float above 20% is extremely
SPX Options Vs. Spy Options – Strategic Advantages and Differences SPX has one major strategic advantage over SPY…. SPX is a European Style Option vs SPY being an American Style Option. This means that SPX is cash-settled at the expiration date, so it cannot be exercised prior to