Key Takeaways Micro E-mini options on futures are set to launch on August 31 The small contract size can help traders manage risk, especially in fast-moving markets You can use Micro E-mini options to trade market-neutral, directional, or multi-leg options strategies Hey, traders! Have you heard? You can now trade options on Micro E-mini futures. […]

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Key Takeaways Implied volatility tends to skew toward either puts or calls Charting volatility skew can give you a visual clue about what the market might be thinking Volatility skew can indicate whether the market is fearful or complacent  The prices you pay for groceries, clothes, and your home come down to supply and demand […]

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Key Takeaways Covered calls and cash-secured puts can help investors generate additional income within their portfolios Both strategies can help increase an investment’s probability of success while reducing overall risk These beginner’s options strategies can help investors reduce the volatility of returns  Nothing is certain in the financial markets. If we’ve learned anything in 2020, […]

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Key Takeaways Lack of conviction—or too much conviction—on trade entry can work against you Some strategies are better suited to specific types of market moves in terms of direction and time TD Ameritrade offers educational resources that can help fill in knowledge gaps Everyone makes mistakes—that’s no secret. For trading rookies, some are more the “oops-I-didn’t-know-that” […]

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Key Takeaways LEAPS options contracts have long terms, offering expiration dates as far out as three years  The risk components of LEAPS—as measured by options greeks—have different characteristics from standard options There’s no arguing that options are time-sensitive instruments. Options contracts decay, which is one of the reasons many new traders shy away from them. […]

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Key Takeaways Selling covered calls could help generate income from stocks you already own Selecting strikes and expiration dates depends on the desired risk and reward trade-off of the position Take a step-by-step look at how to trade a covered call So you own a bunch of stocks in your portfolio. Some have made a […]

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Key Takeaways Volatility levels shouldn’t be the only consideration when deciding which options strategy to trade High volatility levels can mean higher options prices, but know the risks Volatility can change drastically from one day to the next Any veteran option trader will tell you that part of the allure of options strategies is their […]

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Key Takeaways Learn the basics of options exercise and assignment Understand the difference between in-the-money and out-of-the-money options The surest way to avoid exercise or assignment is to liquidate or roll a position ahead of expiration  So your trading account has gotten options approval and you recently made that first trade—say, a long call in […]

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