Making money using options

Isn’t it obvious that what we all want to do is make money using options?

I described in one of my last posts Credit Spreads, Iron Condors, Butterflys and Diagonal Spreads how I make money using options. However there are other opinions out there and definitely many more techniques.

Occasionally I will point out someone else in the blogosphere that really has a handle on how to trade options and today’s post is just about that… The Israeli Speculator is a blog that just started this February and he is very active in posting (I know I should be more active) and has a lot of good quality posts like this one - Five Option Trading Techniques You Can Use RIGHT NOW To Make Money He describes in a summary on the techniques that he would use right now to make money using options (you know like the title says). His choices are - The Box, Synthetic Position, Testing for a Trend, Butterfly Spread (Hmm that sounds familiar) and Delta Neutral.

These choices would fit well with the way I trade and has a conservative flare to the trading. And I really like his method of testing for a trend. He uses a statistical method for trend discovery, which he explains well here - How To Test For a Trend I prefer technical analysis not because it is EASY like he suggests but rather it is EASY to teach and for people to understand. Also it being a pseudo science can be correct as there is some art to it and that really gets to the heart of the matter. I like TA because it is an art and a science - it appeals to my doctor brain.

Another post he has that I found very informative - Who Makes Money in Wall-Street and How Check it out a very good article.

Overall a very well thought out, put together blog, with lots of good information. And since his name is Dan how can he go wrong!!!

Now you may ask yourself why is this guy promoting someone else’s blog? Good question and if you are asking yourself that you have not been reading my blog very long. The purpose of this blog is to give the beginner all the basics needed and all information available to learn everything they can about option trading. My preference obviously is Conservative Options but I feel you need to learn about all different type of methods and since I am not going to present anything but conservative methods, you need to check out other information.