Category: Tutorials
Understanding the Long Calendar Spread - Tips and Insights
The long calendar spread is a relatively advanced strategy for traders aiming to profit from stability. Consisting of buying a longer-term call and selling a shorter-term one at the same strike...
Implied Volatility vs. Historical Volatility in Options Trading [A New Tool in Your Trading Kit]
Volatility should always be on your mind if you want to become a successful options trader. Understanding implied volatility vs. historical volatility is essential. This article breaks down the...
Short Put Calendar Spread: Taking Advantage of Volatility [Complete Guide]
If you expect a drop in implied volatility, you might want to consider the short put calendar spread strategy. In order to achieve this, you sell a longer-term put while buying a shorter-term put...
Finding the Best Naked Put Options (with a Great Edge)
Selling puts is one of the favorite strategies for many traders, especially when it comes to naked put options. This strategy lets you earn from selling uncovered puts without owning the asset....
Managing Naked Call Options: Risks and Strategies of This Option Strategy
Selling a call is a common strategy in options trading, and there are many ways to do it. Naked call options involve selling calls without holding the underlying asset, a move that promises profits...
Benefits and Risks of the Short Calendar Spread Options Strategy
If you're looking for advanced options strategy ideas, the short calendar spread might catch your interest. This is a trade that combines selling a longer-term call and buying a shorter-term one at...
Building a Synthetic Covered Call Strategy - What You Need to Know
Options trading can give investors unique opportunities to manage risk and achieve growth. The synthetic covered call is a strategy that combines the benefits of traditional covered calls with no...
A Backtested Approach to Using Bollinger Bands in Options Trading - Part 2
Following the results we showed in the first part of our series on Bollinger bands, let us show you through real-life examples how you can use this indicator to set up profitable trades. We have...
Poor Man's Covered Call - A Smart Choice for Neutral to Bullish Investors
Sometimes trading can require a high capital amount, so it is not surprising that the poor man's covered call strategy has collected quite some popularity online. This approach offers a way to use...
What Is (and How to Use) the Batman Option Strategy?
The batman option strategy is basically a marketing name for the combination of two vertical ratio spreads (four legs with two positions each—both short and long) and can be a nice idea to consider...