Category: Education

Reading about how the most successful options traders, like Edward Thorp, with his unmatched 20% annual return over three decades, have interpreted the markets can offer valuable insights to anyone...

Sometimes trading can require a high capital amount, so it is not surprising that the poor man's covered call strategy has collected quite some popularity online. This approach offers a way to use...

The batman option strategy is basically a marketing name for the combination of two vertical ratio spreads (four legs with two positions each—both short and long) and can be a nice idea to consider...

While most options strategies feature contracts with the same expiration date, calendar spread options let you "play" with the time concept. This strategy - very popular in options and futures...

You often hear that the value of an option tends to decay with time, but why does this happen? To understand the concept, you will need to learn more about the extrinsic value in options. This...

With options expiring every week, the possibility that your underlying will be close to the strike price on the day your contracts expire is something you should take into account. These cases are...

The Zebra option strategy simplifies managing directional risk in the market and represents a nice way to replicate stock ownership without heavy investments. Whether you lean bearish with a put...

While many strategies in options trading rely on a perfectly symmetrical setup, the broken wing butterfly option strategy introduces a degree of asymmetry to manage directional risk. This method...

If you're looking for a relatively little-known strategy to benefit in a neutral to bullish market, the Jade Lizard options strategy might be your key. This technique cleverly combines selling a...

When you hear talk about in-the-money or out-of-the-money options, it's the concept of option moneyness at play. This simple yet vital concept in options trading describes the relationship between...