How To Use This Site

We're here to help you succeed in the options trading and significantly increase your portfolio yield while remaining a conservative, low-risk investor. Our site is particularly useful for investors that have a significant portfolio, but would like to earn a greater yield than that which comes just from dividend or bond income, while retaining the underlying portfolio. We've got incredibly smart tools, we've got strategies and highly educated and dedicated team. Make yourself comfortable, browse around and ask questions!

Step 1. Read Tutorials

If you're new to options trading, it may worth start off by going through our tutorials. You won't necessarily understand all of it the first time you read through it. And you will need to reread it at least two or three more times. But reading through the material will help you to understand the terminology and the basic concepts.

We start with some of the more basic option strategies, such as covered call writing, and slowly move into more complex strategies, such as butterfly spreads. We also explain what other internet sites are recommending, and how they can claim extraordinary results such as 200% returns per year. Through understanding other strategies the user is able to better analyze the many super investment claims made on the internet.

Links:
Access Training.

Step 2. Try our Planning Tools

We've got some smart planning tools on board, and here's what they would allow you to do:

  • Determine if options in the selection you defined are underpriced or overpriced; if it is worthwhile to buy or to sell any of the selected options;
  • combine options to test the profit or loss that will occur at different stock prices;
  • calculate the possible profit (or loss) that will result if you sell a given call and the stock moves up and the stock is called away;
  • avoid option price changes that occur when a dividend is about to be declared;
  • graph out hedged positions for analysis of what the profit or loss will be at various price points.

Click here to access Planning Tools.

Step 3. Try our Trading Tools

Sometimes we refer to our Trading Tools are as Portfolio Manager or Portfolio Monitor. It is an online program to help you manage your portfolio, where you can combine positions together and receive expiration or "in the money" alerts. It's also the place where you can watch Merv's portfolio and see his trades.

Please check some of Merv's positions below:

#
Symbol
Number
of Units
Cost / Revenue
Gain/Loss
0
Value
0
1
Salesforce...
CRM
500
$27,510
$20,850
$48,360
2
iShares MS...
EWW
200
$13,543.98
-$2,979.98
$10,564

WHEN ALL THE PREMIUM IS “SUCKED OUT” OF A SHORT POSITION, IT TURNS GREEN, WHICH ALERTS YOU TO THE FACT THAT YOU PROBABLY SHOULD BUY BACK THE SHORT POSITION AND SELL A NEW CALL. WHEN THE POSITION IS ABOUT TO EXPIRE IT TURNS RED. AND IF A POSITION GOES IN THE MONEY, IT TURNS ORANGE. This color coding makes option writing much easier to track.

These first few sample trades will be the kind of trades that you will be learning about at the beginning. The first samples you should look at should be based on “covered call writing.” You can compare your analysis of what happened with my analysis. I will then give you my suggestions about what changes if any should be made in the options positions.

Read the help information from the Help page so that you have a good idea of how to use the program. Remember, if you have any questions about it at any time, check our FAQs where you might find an answer to your question or post a new question. We will get an answer back to you promptly.

Create a test portfolio under your name and enter a few trades. From time to time watch your the trades. The Portfolio Monitor will automatically update the prices the values and the profit or loss on the trades every day. Just to make sure that it is properly updated, you should hit the “Refresh" button in the program Control Panel. By seeing how the option values change as the stock price changes you will begin to get a feeling for option pricing.

Links:
Access Trading Tools
About Trading Tools
Help page.

Step 4. Read Merv's book

How to Make Money with Stock Options is an introduction for the conservative, non-professional investor to the strategies used by professional investors to increase yield on investment through the use of stock options.

Links:
About Merv's book.

Step 5. Read Merv's blog for updated information.

Merv's blog includes reports about these trades and you can compare your analysis of what happened with my analysis. I will then give you my suggestions about what changes if any should be made in the options positions. Remember, the examples that I'm going to give you deal with 1000 shares of stock and 10 options. 10 options is the equivalent of 1000 shares of stock. But when you are actually trading for yourself, you can deal with as few as 100 shares of stock (one option) or any increment of one hundred. And of course, you can deal with more than 10 options at a time. Once you've become familiar with the terminology, have the Program up and running, and watched one trading strategy for a two-week period, you can begin to accelerate the learning process. First manipulate the original options positions (covered call writing) if appropriate, and then, two-weeks later, began to test out other option strategies.

Links:
Access Merv's blog.

Once you've gone through this first training session, become familiar with the terminology, have your online portfolio up and running, and have watched one trading strategy for a two-week period, we will begin to accelerate the learning process. First we will manipulate the original options positions (covered call writing) if appropriate, and then, two-weeks later, we'll began to test out other option strategies.

The examples that I'm going to give you deal with 1000 shares of stock and 10 options. 10 options is the equivalent of 1000 shares of stock. But when you are actually trading for yourself, you can deal with as few as 100 shares of stock (one option) or any increment of one hundred. And of course, you can deal with more than 10 options at a time.

I hope that writing options becomes as much fun for you, as well as lucrative, as it is for me.

DISCLAIMER: This is an educational site. The trades suggested on this site are examples to help the readers understand the principals of option trading. They are not intended as "tips" for actual trading and are suggested so that the reader can enter and follow hypothetical trades in the portfolio manager.

Copyright © 2015 Double Your Yield LLC. | Terms of Service | Privacy Policy