Category: Options Trading

sell a call

When you sell a call option, you’re bearish. You sell the call short, and want it to drop in value. You keep the premium (money). It is the opposite strategy of buying a long put, where you still want the price to drop. However, when you sell a call, if the stock moves sideways, or…

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types of options

There are different types of options within stock market trading such as naked options, debit spreads, credit spreads, iron condors, butterflies, straddles, and strangles. As a result, you’re able to make money in any market; up, down or sideways. Options trading is unique in the trading world. There are more moving parts to options than…

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options trading platform

Finding the best options trading platform is an important first step to begin options trading. An options trading platform can make or break a trader. Some of the best options brokers are TastyWorks, TradeStation, and TD Ameritrade. You may be asking what makes a platform the best one? It all depends on you prefer as…

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options charts

Knowing how to read an options chart is key if you are going to trade them successfully. Understanding components such as expiration date, strike prices, open interest, bid/ask, and the Greeks all play a fundamental role in how options contracts come together. Charts are the foundation of options trading. Reading charts makes or breaks traders…

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iron condor options

Iron condor options are a neutral options trading strategy. This is a great strategy to make money during range bound markets. It’s a selling strategy that combines the selling of two credit spreads. The selling of a call credit spread and put credit spread. In order to keep the entire credit, you want price to…

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debit spreads

Debit spreads are a directional options strategy. A debit spread is risk defining meaning the amount you risk is the amount you’ve committed to. They are less risky than buying naked calls and puts. It requires doing a combination of buying and selling calls or puts, depending on the strategy, with the same expiration date….

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