Do you know what a short call is in options trading? Short calls are the same as selling a naked call option, just a different name. You go short or sell a call when you believe that the price of the stock is going down. Be careful selling naked options because of the large risks…
Category: Options Trading
Buying options and selling options makes up the core of every options contract. Every option contract requires both a buyer and a seller. Sellers of options have the trading odds in their favor because most options contracts expire worthless. Just because you have the trading odds in favor it doesn’t mean that you should be…
Bull put spreads are also known put credit spreads. They are a bullish selling options trading strategy that involves selling a put then buying another put with the same expiration date. This combination process enables the options seller to receive a net premium and the seller gets to keep this premium if price expires away…
Bear call spreads are also known call credit spreads. They are a bearish selling options trading strategy that involves selling a call then buying another call with the same expiration date. This combination process enables the options seller to receive a net premium and the seller gets to keep this premium if price expires away…
Bull call spreads are also known as call debit spreads. They are a bullish options trading strategy that involves buying a call then selling another call out of the money with the same expiration date. This combination process lowers the break even price on the trade. What Are Bull Call Option Spreads and How to…
Covered calls are one of the oldest in the options playbook and great for share holders to make some extra income on the shares they are planning to hold onto for the long haul. This is a strategy used to generate income in the form of premiums. The trader that is selling the call owns…
Do you know what a long put is in options trading? Long puts are the same as buying a naked put option, just a different name. You go long or purchase a put when you believe that the price of the stock is going down. One options contract is the equivalent of 100 shares of…
Fun fact – did you know the top butterfly flight speed is 12 miles per hour? Some moths can even fly 25 miles per hour! How does your trading compare? Don’t feel bad if your trading performance has been less than impressive. So, keep reading for some butterfly spread options that can take your trading…
Option Greeks are some of the components that make up options trading. Many seasoned traders rely on option Greeks to evaluate whether or not they should make the trade. However, many new traders aren’t aware of the option Greeks and how to use them. There are some traders who are aware but don’t know how…
There are more than one spreads strategy making vertical spreads an umbrella. Vertical spreads are an options trading strategy that’s popular because of the protection offered. Employing this strategy will give you a higher probability of success and fixed risk while trading options! The most popular vertical spreads are credit spreads and debit spreads. Credits spreads…
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