It’s no secret that options can be an extremely versatile and useful tool when used by themselves or in conjunction with an existing stock position. The cash secured put writing strategy uses put options as a vehicle for generating income…
Investors and traders typically want price movement. A stagnant market doesn’t offer as many opportunities to profit with tight price ranges. Volatility is opportunity, pure and simple. As a market moves, the window expands to capture a piece of it. The…
Instead of buying outright calls or puts, institutional traders might use a basic risk reversal, which is a mix of both calls and puts to structure a position. A basic risk reversal, however, has significantly more risk that simply buying…
Options values and modeling can become quite complicated, but they can also follow some very simple rules. If you’re new to options, one of the most critical elements to understand is the element of theta, or time decay. Theta measures the rate…
Have you ever looked at a stock to buy and were really excited about it, but hesitated because you thought it also could just as easily go down? If so, consider using an option instead of buying or shorting the stock….
How many times have you thought to yourself that a big stock move is coming and the earnings announcement is going to be the price catalyst? What if I told you there was a simple low-cost strategy with a twist that…
Not every day do you get the chance to sit down with a 34-year options industry veteran who was a major contributor to an important book on options by the CBOE and published by Dow Jones. Not only that, but…
I’m sure you’ve read tons of tips about options and may be a bit burnt out by all the advice. However, these four food tips about options I’m about to share are too good not to miss. Take a look…
