The A.J. Brown Show A.J. Brown

At Trading Trainer we're always on the lookout for great trading opportunities, and we've got a good one set up in GE right now.  If you're interested in learning more about opportunities like this, feel free to jump into our daily webinar, where we show you some of our strategies.  Grab your seat now!

Are you sizing your investments based on the potential reward you might receive? Rookie mistake.  Have you lost in the past, and this bet, if it pays out, will cover your losses from before?  Is there something you want to buy? A couch? A car? A house? Your kid’s education? Your retirement? And, if this one investment works out, you’ll be set?  These are all amateur ways of thinking that will quickly end your journey as an investor and leave a sour taste in your mouth.  Follow along in this short episode to see the easy way to ensure your success as an investor. Short answer, size does matter. Watch Now!  Are you interested in learning more about money management and how to calculate your risk-reward ratios?  Head on over to our coaching page and sign-up for your free strategy session.  We can discuss your goals and what you need for your options trading plan: https://www.tradingtrainer.com/coaching/ Be sure to leave a comment below.  Let’s have a discussion.  Then, follow us on:  Facebook: facebook.com/tradingtrainer  Twitter: twitter.com/tradingtrainer  And our Podcast: tradingtrainer.com/podcast

If you're listening to this than you might already be asking yourself that question, why Options?  What are they?  How are they traded?  Why should I even consider them?  Well, you've come to the right place.  Over the past 15 years I've made it a goal of mine to teach others the wonderful powers behind options, and very strategic methods for using them to boost your portfolio, limit risk, and take advantage of a very unique trading tool.

In a previous episode we discussed the methodology behind covering a call with a call, and in this episode we're going to talk about the reverse of that, covering a put with a put.  Covered puts work essentially the same way as covered calls, except that the underlying equity position is a short instead of a long stock position, and the option sold is a put rather than a call. A covered put investor typically has a neutral to slightly bearish sentiment.

When you buy a call, you pay the option premium in exchange for the right to buy shares at a fixed price (strike price) on or before a certain date (expiration date). Investors most often buy calls when they are bullish on a stock or other security because it offers leverage.  In this video we go further into detail on what covering a call with a call looks like.

We talked about call options, now it's time to cover the second type of options contract, called a put option.  A put option is a contract that gives its holder the right to sell a number of equity shares at the strike price, before the option's expiry. If an investor owns shares of a stock and owns a put option, the option is exercised when the stock price falls below the strike price.  In this episode we go over the details of a put option, and how we trade them here at Trading Trainer.