Category: Tutorials

How to Use the Put-Call Parity Formula in Options Trading (Practical Insights)
Put-call parity is a concept that, every now and then, grows in popularity on online forums among traders seeking to link the prices of puts and calls. This article offers practical insights into...

Gain a Market Edge with Leap Options: Long-Term Strategies and Stock Comparisons [Using LEAPS for Optimized Returns]
If you’re an options trader, you are familiar with the typical leverage offered by buying a LEAPS call option. This longer-term options strategy involves lower capital requirements compared to...

Profiting with Advanced Options Strategies [Real-Market Examples and Tips]
If you think that basic options strategies may sometimes limit you, advanced options strategies offer a way to give you a more dynamic approach. Let's look into complex options strategies, such as...

Picking the Bollinger Bands Strategy That Works for You [Examples Included]
Bollinger Bands represent a very popular indicator of price volatility, offering traders a way to quickly understand how much an asset price is moving at a given time. There are ways to trade...

Run Your Own Bull Put Spreads Backtest [Data-Driven Option Strategy]
If the large potential loss of selling a naked put scares you, a bull put spread might be an alternative to consider. This strategy offers a risk-limited way to bet on a stock rising, even with a...

Fifteen Popular Option Strategies for Different Market Scenarios [Full List]
Option strategies offer perhaps the widest range of opportunities to earn money in different scenarios across the whole financial market. With a large selection of different options strategies,...

The Call Ratio Spread Explained: Basic Principles for Traders (Learn the Essentials)
If you want to get rid of downside risk and have found a stock that may move only a little over the next weeks, the call ratio spread might be a strategy to consider. This options setup, ideal for...

Options Trading Strategy Guide: Using ADX to Backtest Iron Condors
As an options trader, don’t you think it would be nice to have a way to know when a stock price is most likely to move sideways for a while? This guide shows how the ADX indicator can help you set...

Open Interest in Options Explained: Key Metrics and Trends (Essential Guide)
Open interest is a concept that, at some point, every options trader needs to understand. It reveals the total number of outstanding contracts in the market. Knowing what open interest means in...

Use the ATR Indicator to Refine Your Options Trading Strategy [Backtest Results]
When you trade options and want to understand how likely you are to profit, running ATR backtests is essential. This article will show you how ATR helps measure market volatility and how Option...