Options Strategy Lessons

If you’re serious about trading options, then you need to understand implied volatility (or IV). Why? Because it’s a stat that helps you place winning trades. If you don’t pay attention to IV, you could end up buying high or selling low. In either case, you’re more likely to lose… Read More

How much does an option change in value as its underlying stock price moves one way or the other? The answer to that is the delta calculation. Delta is one of “the Greeks.” Those are statistical values that give you important info about options. Other Greeks include theta, vega,… Read More

How would you like to profit from a stock that moves significantly in either direction? If so, then consider the long strangle strategy. The key here is that you need large movement in the underlying stock for the trade to be profitable. It doesn’t matter which way the stock moves,… Read More

How would you like to take advantage of the long-term investment benefits offered by stocks at a reduced price tag? If so, then consider investing in LEAP options. LEAP options (or LEAPs) are option contracts that expire at least one year from the date of purchase. The acronym LEAP stands… Read More

How would you like to earn a positive return if you think a stock is going to stay flat or swing wildly in either direction over the short term? If so, then you should check out the butterfly spread. A butterfly spread is a multi-leg options strategy that involves… Read More

Before you buy or sell an option, you need to know its strike price. The strike price is the price at which the option can be exercised. Both call options and put options have a strike price. If you buy a call option, then you want the price of the… Read More