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. My SPY Put Credit Spread Trades For December 2017
    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.

    Read More
  2. My SPY Put Credit Spread Trades For November 2017
    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......

    Read More
  3. My SPY Put Credit Spread Trades For October 2017 (or lack there of)
    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.

    Read More
  4. Tradier and the On-Going Options Trading Software Revolution
    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.

    Read More
  5. 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.

    Read More
  6. 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.

    Read More
  7. 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.

    Read More
  8. 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.

    Read More
  9. My SPY Put Credit Spread Trades For 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.

    Read More
  10. 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.

    Read More