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How to Apply Stop-Losses in Options Trades

by Options Sensei

One of Warren Buffet’s most famous sayings regarding successful investing is, “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.” That means risk management needs to be the priority of every position or investment.  The two...

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Understanding a Covered Call Strategy

by Options Sensei

The other day, I wrote about how people are piling into funds, the employ option premium-selling strategies, particularly covered calls or buy-writes. I figure it’s a good time to drill down into exactly what these strategies entail and...

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Shorting Volatility is Bigger, and Riskier, Than Ever

by Options Sensei

Selling option premium or shorting volatility has often been compared to picking up dimes in front of a steamroller.  Despite the risks and the not-too-distant blow-up of VIX- related products earlier this year, more money than ever is piling...

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