Articles

Many option traders are involved in the market with little or no interest in exercising the options they are trading and/or buying and selling the underlying stock.

The sharemarket boom is not quite on the front pages yet of newspapers but the new record last Wednesday did rate a small heading in the financial press. But wait, it will eventually make the front pages but we are some time away from that. Why? The markets have some way to go.

Aaron Lynch and I have just finished the final Interactive Trading Workshop for this round, in Brisbane. These workshops proved a tremendous success with our traders. During the Brisbane workshop as a group we came across a potentially, highly profitable set-up on the monthly chart of NAB.

This statement was one that was passed around at the recent Interactive Trading Workshop in Brisbane. The idea of price forecasting and repeating ranges was well covered here and this has sparked the thought to put pen to paper and look at some examples.

A strategy not widely used in the Australian market is the credit spread. Credit spreads involve the sale of an option and purchase of another option of lesser value to cover it. To construct a bullish credit spread we need to sell a put and buy a put at a lower strike to cover it.