Category: Tutorials
Simplifying the Collar Option Strategy – [The Protective Collar Trick in Options Trading]
When mixing stocks and options, investors have various ways to shield against market swings. The collar option strategy offers a balanced approach that mixes options and a stock position. What is a...
What are Puts and Calls in Options Trading? (Learn the Basics)
If you've only recently begun learning about options, the first step is understanding what puts and calls are. Puts and calls are fundamental in options trading, offering rights to sell or buy...
Trading with the Bear Put Spread Strategy [Essentials and Real-Market Example]
If you feel like opening a bearish trade is a good idea but don't want to risk too much (as you would with a naked call, for instance), the bear put spread strategy might be for you. This options...
A 101 Beginner's Guide to Implied Volatility (IV) [Implications for Options Traders]
You may or may not be a seasoned options trader, but the concept of implied volatility (or "IV") is essential to understand. Implied volatility measures the market's expectations for price...
The Bull Put Spread Strategy: What You Should Know Before Trading (Practical Considerations)
The bull put spread strategy is one of the most popular ways to trade when expecting a moderate increase in an asset's price. By buying a put option at a lower strike price and selling another put...
Overview of the Bull Call Spread Strategy [Strategies for Moderately Bullish Markets]
When you expect a moderate increase in a stock or ETF price, perhaps options trading is the right approach for you. The bull call spread strategy involves buying one call option and selling another...
The Basics of the Covered Put Strategy: What You Need to Know (and How to Handle Risk)
When you have a short position on a stock, a covered put strategy can help you generate income and manage risk. By selling covered put options, you can earn premiums to reduce your short position's...
Covered Call Strategy: From Theory to Practice [When to Use It and When to Avoid It]
A covered call strategy is a popular options trading technique used by investors to generate additional income from their stock holdings. This article will explore the fundamentals of covered...
How are Options Priced? A Clear Explanation [Beginner-Friendly]
While it may be relatively straightforward to understand how stock prices work, options pricing can be a bit more complex. Options pricing is determined by intrinsic and extrinsic values. So, how...
Real-Life Examples of the Strangle Option Strategy [Practical application]
If you are open to trying multi-leg strategies in options trading, then you'll likely find yourself dealing with the strangle option strategy. This involves buying or selling a call and put option...