Bear Call Spread
The bear call spread is used by investors who have bearish outlook on particular stock. This is a low risk, low reward strategy. To create a bear call spread, you can use a call...
Bear Put Spread
The bear put spread is used by investors who are bearish about a particular stock. This strategy is a low risk, low reward strategy. To create a bear put spread you will use put...
Naked Put
Naked put is a put option that is relatively risky. The seller can lose a lot of money if the stocks move in the opposite direction. On the other hand, the profit potential is...
Bull Put Spread
If you want a low risk, low reward strategy about a stock that you feel positive, then the bull put spread may be the right strategy for you. Using put options at or near...
Call Back Spread
You can use the call back spread if the market is volatile and you are anticipating a big move in your stock. For a call back spread, you need to sell a call or...
Bull Call Spread
Bull Call Spread – A limited risk and limited profit trade that can lower the cost or risk to enter a bullish trade while still making a large % gain with the ability to profit...
Protective Put
Protective Put with Shares – This strategy involves owning shares of a stock while buying open 1 put for every 100 shares owned. Buying open a put at a strike price gives the right...
Covered Call
One way of earning additional income from your investment portfolio is by using the covered call strategy. This strategy is a good way to generate low but steady income from your investments. For example,...
Call Options
Long Call Options – Bullish strategy with limited risk and unlimited profit potential with the rising price per share. Here we look for quick volatile moves on the price per share for the best profitability....
Basic Options Risk Management
A basic rule of thumb with options trading, is to play with what you are willing to lose. As opposed to stock trading where you might be willing to lose 4-6% of your investment...
Your First Options Trade
Let’s walk through a simple options trade. For this walk through, I’m going to use TD Ameritrade. STEP 1 Let’s go to the quote page for the stock we wish to purchase options on. ...
10) Selecting a Broker
If you are new to options trading, you likely have the question, “which broker would you recommend for options trading?” TD Ameritrade I would recommend TD Ameritrade as a great place to trade options....
09) Volume and Open Interest
In this lesson we’re going to take a look at 2 related yet distinct elements of the options chain, Volume and Open Interest. Volume The number shown under the “volume” column of the option...
08) Bid & Ask
In this lesson we’ll discuss the Bid and Ask prices, which are found on the options chain. The BID price is the current price you’d likely be able to SELL a particular options contract...
07) Greeks Beginner
In this lesson I will be going over a very important aspect of options trading, the “Greeks”. If you want to be a successful options trader, then understanding the Greeks and how they affect...