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.

Education

  1. Short-Strangles-Risk-Graph

    Short Strangles Offer Small Rewards And Significant Risks

    The short strangle option strategy is an opportunity to profit when a stock moves sideways. Instead of just selling one call or one put, you sell one of each, which produces twice the income. But the maximum loss with this type of trade is unlimited, while the potential gain is capped at the amount of premiums received.

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  2. 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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  3. 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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  4. 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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  5. 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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  6. 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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  7. 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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  8. 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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  9. How-To-Paper-Trade-Options

    A Quick Guide to Paper Trading Options & Newbie Investing

    Paper trading options is one of the best ways to learn options trading. Learn for example how put credit spreads can boast your returns. When paper trading you can learn first hand about all the different aspects of trading options. Learn how volatility affects premium. Learn to profit from time decay. In this post we are going to explore how to paper trade real options.

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  10. Trading-The-Greeks

    Trading Option Greeks : An Example Trade

    Knowing how the Greeks influence premium is not academic.  Understanding how they are likely to affect your next trade is a critical component of that trade’s set up.   You should always perform an analysis of the Greeks before you send an order to your broker.  Here are some important things to look for.

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  11. Long-Call-Butterfly-Risk-Graph

    The Butterfly Spread is a Great Low-Risk Investing Strategy

    If you want a conservative option investment that controls losses, take a look at the butterfly strategy. This derivative tactic comes with finite profitability, but also downside protection. The butterfly play is best for stocks that have low volatility.

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  12. Different Type Of Option Greeks

    How Option Greeks Affect The Premium You Trade

    Most traders realize that options increase or decrease in value as the underlying stock moves up or down in price.  But, there’s a lot more to how an option’s price changes over the course of time before expiration.  A better understanding of option greeks will go a long way to improving the success of your trades.

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  13. Making-Money-Trading-Delta-Options

    Making Money Trading Delta Options Is One Of The Best Ways To Trade Options

    Making money trading delta options is how top options traders trade. What many traders don’t consider is that your delta doesn’t have to stay consistent throughout a trade. Many professional options traders manage their positions in order to add or decrease delta.

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  14. Buy-Low-Sell-High

    Volatility Trading Allows Options Traders To Think Different

    Volatility Trading is a variable in an option pricing model used to determine the theoretical value of an option.  And, among all the variables in an option pricing model, it is the only one that is derived from market sentiment.  But, the market doesn’t always get it right.  That creates opportunity for an options trader. 

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  15. Short-Straddles-Risk-Graph

    Short Straddles Can Be A Profitable Options Strategy In Flat Markets

    Short straddles present an opportunity to make a profit whenever a stock appears stuck in a neutral price zone. This option strategy generates extra income by selling double the usual number of contracts. While the profitability is capped at the amount of premiums received, the potential loss is unlimited.

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