Category: General
Can You Trade Options in an IRA? The Dos and Don'ts to Know
Can you trade options in an IRA? Yes, but it’s not as simple as jumping in. IRA options trading has limits—forget risky moves like naked options or short selling. Instead, think covered calls and...
Index Options vs Stock Options - Choosing the Right Investment For You
When trading options, it’s important to understand the differences between index options and stock options. While both are popular tools for investors, their unique features can make one better...
Options Liquidity - Tips to Identify the Best Opportunities [with Real-Market Example]
Options liquidity matters. It impacts how easily you can trade options without extra costs or frustrating delays. But how do you spot liquid options worth trading? This article breaks down key...
The Wash Sale Rule in Options and Tax Implications You Should Know
Understanding the wash sale rule in options can save you from unexpected tax headaches. Does wash sale apply to options like calls and puts? What are the key tax implications, and how can you avoid...
Capped Put - A Closer Look at Capped Options
If you are looking into learning more about the concept of "exotic options," one of the strategies worth exploring is the capped put. But what is a capped put, and how does it work? This article...
American vs European Options - The Main Differences You Should Know
Relying on American vs European options comes with different aspects to consider in your trading strategy, but what sets them apart? Is the flexibility of American style options worth it, or does...
Capped Call - An Exotic Option Type
As an exotic type of option strategy, a capped call is designed to limit potential gains while managing risk. But what is a capped call, and how do capped call transactions work? From capped calls...
Exotic Options - What Are They and How Do They Work?
Exotic options are not your typical financial tools. These customized derivatives offer unique payment structures, flexible expiration terms, and distinct activation mechanisms. Primarily traded...
Can You Buy Options on Margin? A Look at the Main Rules Involved
Can you buy options on margin, and what rules apply? Understanding whether options are marginable and if you need margin to trade options can clarify your choices. This article breaks down key...
Options Arbitrage Strategies Explained (Low-Risk Trading Insights)
Options arbitrage offers traders a way to profit from market inefficiencies with minimal risk. But how do arbitrage option trading strategies actually work? This article deals with key options...