Kerry Given
Total live articles: 13
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Kerry W. Given, Ph.D. (a.k.a. Dr. Duke), is founder of Parkwood Capital, LLC, a business that consists of stock and options coaching, a monthly newsletter, a small hedge fund, and two trading advisory services. Given speaks frequently at trading conferences and on behalf of various option brokerage firms. He has discovered first hand how difficult it can be to separate the financial facts from the marketing hype, myths, and get rich quick schemes. Dr. Duke is the author of No Hype Options Trading published by John Wiley and Sons. Given earned his BS from the University of Florida and his PhD from the University of Minnesota.
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This article reviews risk management and two different trading philosophies: directional and non-directional trading.
Many people advertise the "holy grail" of trading or similar marketing pitches. This article debunks the marketing hype by applying the basic laws of probabilities to trading. Success in stock and options trading is quite achievable; you don't have to be a rocket scientist.
The "get rich quick" sales pitch is common in many business areas. But it seems to be pervasive in the options trading education market.
We all have a tendency to believe that someone out there has the secret formula or inside track to making money in stocks and options trading, and if we could just find that secret, we would be making lots of money with minimal effort. Of course, that simply isn't true. There is no free lunch.
The credit spread and its corresponding debit spread at the same strike prices will always have virtually identical returns on investment (ROI). This paper addresses some of the myths surrounding the role of implied volatility in the vertical spread, both at initiation and over the course of the trade.
Trading strategies come in all sizes and shapes to suit anyone’s style and risk preferences. But the reality is that none of these strategies have an inherent advantage. Some trading education firms and authors of trading books will often claim that they have found the holy grail of trading and have the “best” trading strategy. Each trading strategy has its own set of advantages and disadvantages. One must learn to manage the trade in such a way as to develop a probabilistic edge.
Beginning options traders often make costly mistakes due to either a lack of knowledge or misinformation about the basic parameters of options and their exercise. Examples of common errors include being surprised that one is unable to close an index option position on the Friday before expiration, or being surprised by an unhedged option exercise during expiration. This paper covers some of the basic concepts surrounding option expiration and how options are exercised.
Options trading strategies that benefit from the time decay of options prices are attractive for monthly income generation. Pay attention to the calendar and put time on your side.
The reality of the trading business is that a large percentage of one’s trades will be losers. Every business has overhead expenses, or costs of simply opening the doors for business. Trading is no different and trading losses are a large part of those overhead expenses. Once one accepts that aspect of trading, it becomes much easier to close losing trades early with minimal emotional attachment.
It is common to see web site banners or other advertisements similar to the title of this article, touting the benefits of options trades with probabilities of success of 85-90%. But that can be very misleading.
