Category: General
Stop Losing Money on Options with These 3 Tips
Losing money on options? You are not alone. Many traders struggle with this, often asking, “Why do I keep losing money on options?” The reasons often boil down to poor planning, weak strategies,...
Option Leverage - How It Works and Why You Should Know About It
Option leverage lets traders amplify potential gains while using less capital. By paying a small premium, you can control 100 shares—something that isn’t possible with stocks alone. This article...
Time Decay in Options - Does It Help or Harm Your Trades?
Time decay in options is a concept that you certainly don't want to ignore. The whole concept is rather intuitive (the closer you get to the expiry date, the more value your option loses), but...
Qualified Covered Calls: Simplifying Tax Rules for US Traders [With Scenarios]
Qualified covered calls can offer attractive tax advantages, but the rules can get tricky. How are covered calls taxed? It depends on expiration dates, assignments, and stock holding periods. This...
How Are Options Taxed in the US? The Facts You Need to Know
Figuring out how options are taxed in the US can get tricky. Taxes on options trading depend on factors like your strategy and whether you hold a long or short position. Are options taxed as...
Options Trading Fees - An Impartial Comparison Among Brokers
The fees you pay when trading options can greatly affect profitability. With option fees and services varying between brokers, choosing a broker exclusively based on who has the lowest options...
Can You Buy Options in the Pre-Market? [What Traders Need to Know]
Pre-market trading is gaining popularity, but does this apply to options traders as well? Can you buy options in the pre-market, and if so, what are the limitations? While stock options aren't...
What Happens When Options Expire in the Money? [Buyer and Seller Cases]
What happens when options expire in the money? And does it change depending on whether you’re a buyer or a seller? In this article, we look at what happens when options expire in the money for both...
What Happens to Options When a Stock Splits? [and When It Reverse Splits]
Stock splits can significantly affect options traders. What happens to options when a stock splits? How are contracts adjusted to maintain fairness? And how do reverse splits impact options...
What Happens to Options When a Company Is Acquired? Effects on Calls and Puts
As a trader, you will sometimes face particular challenges, like figuring out what happens to options when a company is acquired. This process can impact stock options (both calls and puts), at...