Options Strategy Lessons

How would you like to earn a healthy return from a stock that you think will rise modestly in the near future? If so, then you should check out the long broken butterfly strategy. As the name implies, a long broken butterfly (or long skip-strike butterfly) is based on the… Read More

How would you like to earn a healthy return from a stock that you think will drop moderately in the near future? You can do that without even shorting the stock if you trade a bear put spread. A bear put spread is similar to a long put except that… Read More

If you bought a stock option, it could be “in the money.” But what does that mean? It means that, for the moment, the underlying stock has moved beyond the option’s strike price. There’s a lot to unpack in that last sentence. I’ll do so in this guide. The Strike… Read More

If you bought a stock option, it could be “out of the money.” But what, exactly, is “out of the money”? It means that, for the moment, the underlying stock has yet to move beyond the option’s strike price. There’s a lot going on in that last sentence. I’ll break… Read More