Well, 2017 is here. And it’s still a never-leave-the-house world (worse, actually). Your cat litter comes from, well, the cat litter place. You can get pizza at 5 a.m. if the bourbon wears off. Your shaving cream comes from your fav online retailer. Who needs outside? When it comes to trading in your pajamas around […]

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Feeling pretty experienced with trading long calls, long puts, and writing covered calls? Vertical spreads are one of the building blocks of options trading, and they can be a logical next step. Depending on its construction, a vertical spread can be either bullish (benefiting from a rise in the underlying’s value) or bearish (benefiting from […]

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  Call options are complicated because there are a lot of moving parts. If you’re new to options, you may not realize that there’s more to them than just anticipating how much price will move. You also have to forecast when price will move and how market makers and other option traders will react to […]

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One of the main things that makes options attractive to some investors is the flexibility they can provide during a variety of market conditions. Regardless of whether the market is going up, down, or sideways there are options strategies that can be used to speculate on the direction of different investments, generate income, and potentially […]

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Did you put up a trade today? If not, did you at least know how your positions were doing? The term “trading” doesn’t just refer to placing an order. Think of a market maker who “trades” on the floor. She may have spent most of the day waiting for an order to come in. But […]

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Fear is as much a part of modern trading as macroeconomics. But don’t let those fears haunt your trading dreams. Two lesser-known market measures can help self-directed traders get a deeper understanding of risk and what makes the market jumpy. You can’t trade a gauge or index or “feeling.” But you can keep an eye […]

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As any fashion professional would tell you, though your collection of outfits provides the base of your wardrobe, the accessories—those extra little add-ons—can make the difference. If we were to draw a parallel to the options market, the base would consist of your typical options strategies—single-leg options, verticals, straddles, strangles, and such—that make up the […]

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Suppose you’re long a stock that has appreciated nicely, but you’re getting nervous that it may move lower. You don’t really want to exit the stock, but you’re not sure how to protect your investment. Or suppose you’re thinking about buying a rallying stock that looks like it still has some upside, but you want […]

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The following, like all of our strategy discussions, is strictly for educational purposes only.  It is not, and should not be considered, individualized advice or a recommendation. Options trading involves unique risks and is not suitable for all investors. Options traders can potentially make money in the market when one of two things happens: when […]

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So you’ve got an options strategy in a stock or exchange-traded fund (ETF)—say a covered call, a naked call option, or even a multiple-leg strategy like a call vertical spread—that’s humming along, and all of a sudden you receive notice that one leg, likely a short in-the-money call, has been assigned. Worse yet, it’s happened […]

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