Credit vs. Debit Spreads: Let Volatility Guide You
When deciding between trading credit spreads or debit spreads, it can be helpful to align the options strike prices and expirations with the level and direction of implied volatility.
Calculating Risk on Vertical Options Spreads
When trading vertical options spreads, the maximum risk and profit potential are defined and relatively straightforward to calculate. Here's how to assess the risk parameters.
Bullish & Bearish Vertical Options Spreads
Learn about vertical credit and debit spreads, why they're used, and how option traders can potentially incorporate them in their trades.
Trading with Broken Wing Butterflies
Learn how to turn a long butterfly spread—typically initiated with a debit—into a credit spread by adjusting one of the wings, aka a "broken wing butterfly."
Viewing Options Volatility Through Different Lenses
Volatility is a popular options topic among traders. But it can be confusing. Looking at volatility from trading capital, past activity, and probability perspectives can help.
How to Use Weekly Stock Options
Learn how weekly stock options can potentially help option traders target their exposure to market events, such as earnings releases or economic announcements.
Selling Options: Strangles vs. Iron Condors
If volatility levels out after a spike and is expected to fall, this can potentially present opportunities to use selling strategies like strangles and iron condors.
How to Help Manage Risk with Vertical Spreads
Learn how vertical spreads can potentially be a cost-effective way to speculate on direction.
Unbalanced Butterfly and Strong Directional Bias
A trader's guide to tweaking a butterfly when they have a strong directional bias, time to expiration is short, and they want to squeeze as much as they can out of their position.
Adjusting Losing Trades: Four Scenarios
You have a losing trade, but you don't want to sell. Here are four options strategies to try and adjust losing trades.