Chapter 8. Practical Considerations Before Implementing Trades

Before we start discussing the various types of options trades you can enter or open, we need to discuss some of the practical issues you must consider first. We discussed much of the philosophy behind our keep-it-simple approach to options trading in the Preface. Overly complex options trades (or even overly complex analysis) do not necessarily earn you higher returns. However, you still need to consider some fundamental aspects of the trades. This chapter discusses these aspects.

Earnings Announcement Calendar

To trade around earnings announcements, first you must have an idea of when earnings announcements for companies are scheduled to take place. Several sources are available ...

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