Traders who strongly believe the price of an underlying asset will change significantly in the near future but are unsure about the direction of the move can trade combinations of options th... Read more
An investment portfolio generally comprises diverse assets like stocks, ETFs, mutual funds, and bonds. Although it offers numerous advantages, investing and trading in options, an additional... Read more
Most option traders are familiar with selling covered call options on stocks that they already own in their portfolio to generate cash flow, but what if an investor wanted to generate income... Read more
A put credit spread attempts to make money through selling put option premium and having the stock price move higher or stay in the profitability zone by expiration. A put credit spread can... Read more
A cash secured put is created when a put option is sold to open at the same time as capital in an account is designated to buy the underlying stock at the strike price if the put expires in-... Read more
What is a leap? LEAPS is an acronym for options contracts called a Long Term Equity Anticipation Security. Leaps are derivatives with a long term expiration date that have prices that fluctu... Read more
A “squeeze” is price action that is so strong in one direction that it forces traders and investors to change their market positions based on moves going too far against them. Th... Read more
Here is a list of the best books on options trading based on Amazon sales, reviews, ratings and author popularity. It is important to have a full understanding of the options market and pric... Read more
Theta Gang is the slang for being a member of a group of other option writers with the mindset that selling premium is a preferred strategy than buying options. They are short Theta by selli... Read more
Maximum pain for an options chain can show the option trader the expiration date price that will cause the option buyers to lose the most money. The max pain level is the strike price with t... Read more
