Ultimate Options Trading Strategies

The most worthwhile of the "Greeks" for options trading (and specifically for timing of trades) is options delta. This indicator looks at likely change in option value relative to change in the value of the underlying. The higher the delta level, the more likely the premium will move more than movement in the same direction for the underlying.

By Michael C. Thomsett, Saturday at 02:46 AM

We wanted to provide a quick update on the Anchor strategy tweaks and improvements. We’ve now been tracking the two different leveraged Anchor Portfolios for close to six months – more than enough time to began a review of performance and make some definitive decisions.

By cwelsh, November 14

We can ride the evergreen patterns, and we have, for years. But when the market shifts, we need a minimum amount of data to adjust, and succeed -- now we will. This is our time with Apple. It's time to take advantage of volatility. Fear, uncertainty, doubt, unclear news headlines. 

By Ophir Gottlieb, November 13

A butterfly spread is an option strategy combining bull spread and bear spread. Butterfly spreads use four option contracts with the same expiration but three different strike prices. There are few variations of the butterfly spreads, using different combinations of puts and calls. Butterfly spreads can be directional or neutral.

By Kim, November 5

In my last article on October 8th, I posed a thought provoking question...Do all stocks have the same expected returns? I discussed how it's generally accepted that fixed income securities and asset classes with longer maturities and lower credit ratings are factors that command a risk premium over time.

By Jesse, November 3

When a daily session moves in the direction opposite the prevailing trend, it is called a “divergent bar.” As a reversal day, it signals a likely change from bullish to bearish, or from bearish to bullish.

By Michael C. Thomsett, November 2

Just about every place I turn someone is spouting the use of covered calls or naked calls. The basic premise is one can pick up "easy money". Unfortunately, I'm aware that there is only so much one person can do to stop this insanity and I've tried in previous articles.

By Reel Ken, October 31

One of the interesting features about options is that there is a relationship between calls, puts, and the underlying stock. And because of that relationship, some option positions are synthetic to others. The prices of put and call options have an identity relationship through the concept of put-call parity.

By Kim, October 30

The graphically named “gut strangle” is a seldom-used strategy, but it might work in some circumstances. This involves trading in-the-money calls and puts. A long gut strangle is set up by buying both options; and a short gut strangle calls for selling both sides.

By Michael C. Thomsett, October 19

In the second week of October 2018, the Dow Industrial Average tumbled 1,300 points within a two-day period just ahead of earnings season. How did it happen? There were several explanations for why stock prices sold off, but the most obvious was that investor fear had changed market sentiment.

By Nathan Wade, October 18