Instead of searching for an options play structure every time you come across a potential option trade you want to make you can now simply refer to the below guides created by Gavin McMaster... Read more
Buy to open versus buy to close in options trading are very different processes that many stock traders don’t understand. A buy to open order in options trading is when a call or put... Read more
Option contracts are different than stock shares in the way they are created, traded, and closed. There are two different types of selling in options trading: sell to open vs sell to close. ... Read more
A synthetic share of a stock is created by buying and selling stock options to simulate an options play that moves the same way that holding shares in the stock would move without the same a... Read more
A diagonal spread options play is a modified calendar spread that is built with different strike prices. It is opened by entering into a long and short position in two options of the same ty... Read more
This is a guest post from Gavin McMaster @OptiontradinIQ Searching for income has become a challenge. Bonds have been a traditional conservative income stream for decades. Yet, bond yields a... Read more
The jade lizard is an option play that is created by opening a bearish vertical spread using call options and adding a put option sold at a strike price lower than the call spread strike pri... Read more
Call options are in the money when the underlying stock that it is written on has a price higher than a the call option strike price. A call option can be used to call away a stock at the pr... Read more
Option traders who believe the price of an underlying asset will not change significantly in the near future can sell short combinations of options that have different directional biases and... Read more
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
