Option Trading Article of the Week
Option Trading - How I Trade Options - Form An Opinion - Magnitude
Posted by Pete Stolcers on July 18
At this stage I’ve nailed down the stock and I’m firm on the direction. Now I have to determine the magnitude of the move. Historical volatility, long-term technical support and resistance levels, relative valuation and overall market conditions guide me. Historical volatility - If the stock has had a habit of making large moves, there is a likelihood that the pattern will continue. Conversely, if a stock has a nice orderly grind to it, the chance of an explosive move is small. Long term technical support and resistance levels - These areas represent resting points for a stock. They include…Read the rest of Option Trading - How I Trade Options - Form An Opinion - Magnitude
Stock Options Question of the Week
How Does Assignment Work?
Posted by Pete Stolcers on July 17
Question Robert states, "My question regards the assignment of options. I'm not exactly sure how the dynamics work and how to determine if I'm in danger of being assigned. Suppose I sell a call, when does the person on the other side get to buy the call you put up for sale?
Read the answer to How Does Assignment Work?

