Category: Tutorials
Long Put - A Strategy Profiting from Bearish Phases [Example Included]
One of the very first strategies anyone generally meets when learning about options trading is the long put. However, its popularity does not mean that it is simple to understand and to use in...
Box Spread Strategy Explained [Focus on Key Elements]
If you're looking for an arbitrage opportunity in the options market, the box spread strategy may be what you need. This approach combines a bull call spread with a bear put spread, aiming to...
Use a Backtest to Build a 52-Week High or Low Options Trading Strategy [Free Backtest File]
When the trend is strong, there could be either trend-following or trend-reversal opportunities at a stock's 52-week highs and lows. Using our backtest file, you can measure the effectiveness of...
The Role of Bid vs Ask in Options [From Theory to Practice]
One of the very first concepts a financial trader will encounter is that of the bid and ask price. Bid vs ask in options (as in any asset trading) highlights the prices buyers and sellers agree...
Generating Income with a Low Risk Options Strategy
Many traders look for ways to generate income using a low risk options strategy. This guide unpacks the safest options strategy, explores the myth of zero risk option strategies, and reveals the...
Protective Call - A Way to Safeguard Your Short Position with Options
One of the main cons of going short on a stock is the risk of unlimited loss if prices rise unexpectedly. A protective call offers a solution to this issue by hedging your short position with a...
The Basics of Max Pain in Options [Essential Knowledge]
The concept of "max pain" is a recurring one for traders. Max pain in options refers to a theory where stock option prices gravitate towards a point where most options expire worthless....
Long Straddle Strategy Explained: Tips for Options Traders [with Real-Life Example]
The long straddle strategy is certainly among the most popular choices of options traders. The idea behind this approach is straightforward: buy both a call and a put option on the same asset to...
Backtesting Beta for Volatility Insights: Build Smarter Options Trading Strategies and Portfolio Ideas
As an investor, it is likely you have already come across high-beta stocks. These stocks can significantly overperform in bull markets and underperform in bear scenarios. While we would not advise...
Understanding 0DTE Options [The Basics You Need to Know]
One of the many ways to include options in your portfolio is to select those contracts that are very close to expiration. 0DTE options, meaning "zero days to expiration," offer quick trading...