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. Implementing a Short Calendar Spread with Call Options

    Implementing a Short Calendar Spread with Call Options

    When you foresee upcoming volatility in a stock, an option play that can make money from it is the short call calendar spread. Because there are two expiration dates in the strategy, it has a considerable amount of complexity and should only be attempted by experienced traders.

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  2. Short Strangles Offer Small Rewards And Significant Risks

    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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  3. How to Trade Earnings with Straddles and Strangles

    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. The Long Calendar Spread Explained

    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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  5. Jumping From Stock Investing to Options Trading

    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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  6. How to Profit with a Short Calendar Spread

    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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  7. Introduction to the Butterfly Spread Options Trading Strategy

    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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  8. How Does Volatility Affect Option Prices

    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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  9. Learning The Short Butterfly Strategy

    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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  10. A Quick Guide to Paper Trading Options & Newbie Investing

    A Quick Guide to Paper Trading Options & Newbie Investing

    Investing comes with risks, that’s a fact of life. Generally speaking, the greater the risks, the greater the potential for profits. In these regards, options trading offers a high potential for profits, but does come with some higher risks. This is especially true for newer investors. Experienced and/or well-educated options traders, however, can utilize a variety of strategies to lower risks.
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