When using put or call options to trade, we should always strive to make these gambles risk-free, since directional plays based on gut hunches are longshot bets. The simplest way to do this entails legging into bull or bear spreads so that the cost of the options one has sold short equals or exceeds the price one has paid for options bought. This produces a ‘credit’ spread. Obviously, it entails buying and selling the options at different times. In this lesson, we looked closely at how to do this, focusing on a riskless put spread in Yahoo! that had been recommended to subscribers.

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Trading the $500 Twitch

By Brian Catalucci on August 18, 2013

Stocks were falling when this lesson began, but we went cautiously against the trend in Google to come up with a winner that took all of three minutes to play out. Who cares about the trend when one can make $500 in just a few minutes by catching a small twitch up or down in a $900 stock? In an average day, Google probably twitches hundreds of times. You may be surprised at how easy it is to spot the nervous ups and downs that can deliver quick, painless profits.