We like to explore, educate, and share ideas involving options trading. Come along with us on
our journey to demystify the complex yet rewarding world of options trading.

  1. Profit Loss Volatility In The Options Market

    My SPY Put Credit Spread Trades For February 2018

    Volatility is back! Seems the day of the market just creeping up every day are over. In February 2018 the market tanked creating tons of new opportunities for entering Put Credit Spread trades. Sadly, we took some losses but in this post I explain that is not a bad thing. 

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  2. Stock Market Going Up - Trade Options

    My SPY Put Credit Spread Trades For January 2018 (or lack there of)

    In January 2018 the markets where pretty stable -- Well stable in the eyes of an options volatility trader. It was not until the end of January when the market made a turn and volatility came back into the market. I opened a few trades in January 2018 but none closed.

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  3. 112189-Oojkdc-296

    How to Trade Earnings with Straddles and Strangles

    American corporations release their earnings reports every 3 months. The data gives investors an idea of how well the companies are doing financially. If an earnings announcement contains any information traders weren’t expecting, the stock price could plummet or skyrocket, depending on whether the release is negative or positive.

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  4. Baby-2604853_1280

    My SPY Put Credit Spread Trades For December 2017

    Options traders in December were laughing like this kid all the way to the bank! Well maybe not really. No retirement plans just yet. After a bit of a dry spell I closed 2 put credit spread trades. This month is a good example of why you never second guess your strategy. You will notice I put on 2 spreads a day apart with nearly the same strikes prices and the same expiration.

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  5. Dog-2437110_1920

    My SPY Put Credit Spread Trades For November 2017

    If you are an options volatility trader November was a boring month. I opened 2 put credit spread trades in November -- none closed. We will look at these closing trades in December.

    We are in sit and wait mode. Just like this dog......

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  6. Put-Credit-Spreads-Make-Me-Sad

    My SPY Put Credit Spread Trades For October 2017 (or lack there of)

    If your an options volatility trader this is how you felt in the month of October. I was unable to open any put credit spread trades in October. Bottomline......volatility was super low! I think the market is just sort of flat waiting for tax reform. 

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  7. Tradier-Logo-Square

    Tradier and the On-Going Options Trading Software Revolution

    Tradier is a powerful brokerage API that allows non-brokers to provide broker services. Let’s talk about why Options Cafe selected Tradier as our first official partner.

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  8. Long-Calendar-Spread-Graph

    The Long Calendar Spread Explained

    Instead of trading stocks or other securities, why not trade time? The long calendar spread allows you to buy and sell option contracts with different expiration dates, with the likelihood of profiting from time decay. The maximum loss of this strategy is capped at the net debit the investment incurs at the entry point.

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  9. Stock Trader To Options Trader

    Jumping From Stock Investing to Options Trading

    Many stock traders are jumping into options trading. Options offer a fantastic way to diversify and to produce extraordinary returns. Let’s look at the key differences between options and stocks, and why so many stock traders are becoming options traders.

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  10. Calendar-Spread-Image

    How to Profit with a Short Calendar Spread

    The short calendar spread is a good opportunity to profit from a stock’s impending upswing or decline. The maximum gain from the investment is the net credit received when entering the trade, and the maximum loss could be substantial. Therefore, this option strategy should only be used by experienced traders.

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  11. Butterfly Options Trading

    Introduction to the Butterfly Spread Options Trading Strategy

    The options butterfly spread is a low-risk options trading strategy that stands a high chance of producing a small profit. The  butterfly options trading strategy uses four options contracts to produce profits off of price stable markets.

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  12. Put-Credit-Spread-Trades-September-2017

    My SPY Put Credit Spread Trades For September 2017

    Once again it is time for our monthly summary of trades I closed. Below are the put credit spread trades I closed in September 2017. My birthday month!! Compared to August a number of put credit spreads closed this month. Volatility continues to be very low. When volatility is low we have less opportunities to place trades. Click to take a look at the trades.

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  13. Premium-Options-Trading

    How Does Volatility Affect Option Prices

    There are six variables that determine an option’s theoretical value.  But, theoretical value is not the same things as market value.  The thing that links theoretical and market value together is one key variable out of the whole mix.  This one key variable is volatility and it has a huge influence on how an option is going to trade.

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  14. Options-Growth-2

    How Successful Options Traders Generate Monthly Income

    Many people think they can quit their day job and start day trading. The truth is, most do not succeed day trading long term. There is an alternative that can generate monthly income just like you hoped to do by day trading. In this post we explore the concept of selling premium in the options market using probability-based options trading.

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  15. Short-Put-Butterfly-Risk-Graph

    Learning The Short Butterfly Strategy

    The short butterfly option trading strategy is a good way to earn small profits, while keeping downside risk to a bare minimum. If you think a stock is set to experience a sizeable move, either up or down, break out your short butterfly playbook.

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