Investor
I don't actually subscribe to the Smart Options eReport, but I've landed on serveral of the articles of the web site through searches. The articles I've looked at have been informative and meaningful, and without marketing hyperbole.
One of the recent articles I landed on had to do with
Limit Orders and
Options. The information regarding Limit Orders is not only applicable to options but is also very
applicable when dealing with equities. They talk about going 'inside' the spread to gain good entries and
exits. Limits also prevent one from getting shafted from the market makers who attempt to gain every
penny possible, so you should as a result try for every penny possible as well. Limit Orders will also
offer protection during fast moving markets, they can help prevent the emotional 'gotta get in at all
costs' mistake.
Another article, this one from the middle of last year, deals with
Option Spread
Trading. This one is a good introduction to spreads, and uses bull and bear spreads as examples.
With a bear spread, you buy a put in the expectation that the price of an equity will go down. You also
sell a put at a lower strike price. By selling a put, the price you get for selling the put offsets part
of the premium you paid to buy the higher put. Read the article in its entirety to get a good feel for
how the whole mechanics of the trade work.