Category: Tutorials
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...
A Focus on the Option Buying Power: What It Is and How It Works [Explained]
If you are a trader, you must have certainly found the concept of option buying power on your broker's platform. This simple concept is the cash available in your account for options trading....
The Basics of Index Options: An Overview for Beginners (Trading Indexes and Index-Based ETFs)
Index options represent, by far, one of the most accessible ways for beginners to get broader market exposure. This article clarifies what index options are (meaning stock index options). Discover...
An Essential Guide to the Put Ratio Spread (Example and Things to Know)
We often tell you that one of the main advantages of options trading is that you can benefit from little or no movement in the underlying price. A put ratio spread offers this potential by buying...
Trading Earnings Events with Options - A Backtested Strategy
After an earning event, stocks can experience a sudden price change depending on the way the market interprets the company's performance. This can be an opportunity for traders to capitalize on...
Selecting Day Trading Options Strategies [Create a Trading Plan and Stick to It]
Day trading options strategies represent, perhaps, the riskiest (and yet, most tempting) operations for traders eyeing quick profits. By exploring option day trading strategies and understanding...
How to Use a Spread Option Strategy [Horizontal, Vertical, and Diagonal Spreads]
One of the main advantages of options trading is that it can give you the chance to invest in an underlying asset at a reduced cost or with limited risk. The spread option strategy, including...
Finding the Most Successful Options Strategy [Different Strategies for Different Outlooks]
If you're on this page, it is because you've probably spent a lot of time searching for the most successful options strategy. Whether you're curious about the most profitable options strategy or...