The Fed’s future path still seems more bullish than the European Central Bank. If so, the yiel...
Selling Puts and Calls as a Trading Strategy
09/03/2009 12:01 am EST
Options trader Mike Cavanaugh worked on the floor of the Chicago Board of Trade as a broker and floor trader from 1997 to 2003. In this interview, I talk with Mike about how he trades put and call spreads, why he favors selling puts and calls instead of buying them, and at which month and strike price he typically chooses to sell. We also discuss how he looks at the underlying security to determine which options to sell and which options trading strategies to employ. Mike then talks about the "Greeks" he monitors and how the price of the spread and volatility affect his trading decisions.
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