Category: Tutorials

Dividend Aristocrats and ETFs: The Ultimate Wheel Strategy for Options on Stocks
Dividends have attracted investors for decades, and trading options on dividend aristocrats offers a smart way to benefit from their stability. By examining historical dividend yields, you can...

Short Strangle: A Strategy for Stable Markets [Theory, Example, and Things to Know]
One of the features traders enjoy the most about options trading is likely the possibility to earn even in a sideways market. The short strangle option strategy allows this by selling a call and a...

Long Strangle - Profit from Market Movements with Options Trading [Expert Tips]
There are moments in which you know that a given stock is going to move significantly, but the direction in which this may happen is not clear. As you may not like to join a guessing game, the long...

Options Settlement: How It Works [Must-Know Facts]
Options settlement is a basic concept to understand if you plan to enter the derivative market. Knowing about options settlement time and its mechanics is crucial. When do options settle? And what...

How Does the Short Straddle Work? A Beginner-Friendly Breakdown [Guide]
One of the most appealing aspects of options trading is that you don't necessarily need the underlying asset to move significantly to profit. The short straddle strategy, involving selling both a...

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...