Category: Tutorials
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...
Straddle Option Strategy - Two Option Strategies for Handling Market Volatility
Once you learn how a simple long call and long put trades work, there's a good chance you will become more interested in advanced strategies. This guide will focus on the straddle option strategy,...
A Backtested Approach to Using Bollinger Bands in Options Trading - Part 1
All traders know that, in general, a few rules will hold true no matter what the market climate is (especially when using the Bollinger Band indicator or similar tools). For instance, stocks move...
The Top Earnings Option Strategies for Any Market
Throughout every quarter, a good earnings option strategy can help you making sense out of the increased price volatility in the stock market. Today, we will look into four main strategies that,...
A Comparison of Cash Secured Put vs Covered Call [P&L and Examples]
When looking at a company you like, there are different ways to invest in it other than simply buying shares. This article explores cash secured puts vs. covered calls, highlighting how the...
Understanding the Iron Butterfly Option Strategy
This article outlines how the Iron Butterfly Option Strategy works, including the short iron butterfly and long iron butterfly variations, provides tips for successful trading with it, and explores...