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black scholes option pricing model

How are Options Priced? A Clear Explanation [Beginner-Friendly]

Tutorials

While it may be relatively straightforward to understand how stock prices work, options pricing can be a bit more complex. Options pricing is determined by intrinsic and extrinsic values. So, how...

Comparison of Long and Short Strangle

Real-Life Examples of the Strangle Option Strategy [Practical application]

Tutorials

If you are open to trying multi-leg strategies in options trading, then you'll likely find yourself dealing with the strangle option strategy. This involves buying or selling a call and put option...

long straddle

Straddle Option Strategy - Two Option Strategies for Handling Market Volatility

Tutorials

Once you learn how a simple long call and long put trades work, there's a good chance you will become more interested in advanced strategies. This guide will focus on the straddle option strategy,...

The Importance of Keeping an Options Trading Journal [Excel Template]

Excel/SheetsUnique

Successful traders have strategies and systems in place to consistently make profitable trades, but they also have something else that is often overlooked - a trading journal. A trading journal is...

Mistakes to Avoid when Selling Cash Secured Puts for a Living

The Trader's Lifestyle: Selling Cash Secured Puts for Income [Calculator included]

Excel/SheetsTrades

One of the many benefits of options trading is that, while perhaps less easy than it seems, it is not unrealistic to make a living by selling cash secured puts for income. This strategy involves...

A Backtested Approach to Using Bollinger Bands in Options Trading - Part 1

ResearchTechnical AnalysisTutorials

All traders know that, in general, a few rules will hold true no matter what the market climate is (especially when using the Bollinger Band indicator or similar tools). For instance, stocks move...

table_strategies_earnings

The Top Earnings Option Strategies for Any Market

EarningsTutorials

Throughout every quarter, a good earnings option strategy can help you making sense out of the increased price volatility in the stock market. Today, we will look into four main strategies that,...

1_ACN

Understanding What Is an IV Crush and Its Implications for Options Traders

Implied volatility

There are few certainties in the life of an option trader, but the fact that the implied volatility of an option will regularly crush after a major event linked to the company is among these. If...

Cash Secured Put vs Covered Call

A Comparison of Cash Secured Put vs Covered Call [P&L and Examples]

covered callsSelling premiumTutorials

When looking at a company you like, there are different ways to invest in it other than simply buying shares. This article explores cash secured puts vs. covered calls, highlighting how the...

Iron Butterfly Shape

Understanding the Iron Butterfly Option Strategy

Tutorials

This article outlines how the Iron Butterfly Option Strategy works, including the short iron butterfly and long iron butterfly variations, provides tips for successful trading with it, and explores...

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