Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.
A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...
Earnings season is here, ladies and gentlemen, and with it comes heightened volatility for many stocks as investors anticipate, and react to, quarterly reports. What can savvy traders do to capitalize ...
Earnings season may seem like a scary time to trade stocks given the heightened chance of a volatile post-earnings move. Options can often provide speculative players the ability to invest in the ...
After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...
Options are a type of derivative, meaning they “derive” their value from the securities they’re linked to. Options are also leveraged, meaning a smaller amount invested in them generates larger gains ...
Traders typically think of options as a way to quickly multiply their money, and sure, they can do that. But options can also be used to generate income, and they can offer lower-risk ways to provide ...
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Michael is a former senior editor of investing and trading products for ...
The UTLY ETF capitalizes on volatility with options strategies to deliver weekly cash payouts. Investors should understand the benefits and drawbacks of ULTY before considering a share position. Are ...