SteadyOptions Trading Blog

I love to trade SPX diagonals, especially when IV skew is higher than usual and I get a wider range of break evens. I know that time options spread break evens are “theoretical” because they are dependent on the IV skew of the front and back month’s IV that changes all the time.

When it comes to growing a business, there are many different options out there. For example, you could try traditional marketing methods or explore new and innovative ways of expanding your company. One such way is through investment trading.

Asset management has proven to be a fruitful career for more than a few professionals in recent decades, explaining why it’s attractive to finance professionals and students. Not only is it a financially rewarding career, but it’s one of the more interesting ones to pick.

Options are distinctly different from stocks in that they’re derivatives of another asset. The entire value of an option contract depends on factors outside of itself--it’s all based on the price of its underlying asset. Options are highly mathematical in nature, and in some ways, we can quantify the precise value of an option using a model like Black-Scholes.

Both the Iron Condor and Iron Butterfly are short-volatility option spreads. You'd use them to profit from situations where option prices imply a larger price move than your view of the market. These spreads are how traders profit from stocks that go nowhere.

Forex options are options that are tied to a currency pair. Forex options can be both call or put options. The option matures in the money if the exchange rate for the currency is above (call) or below (put) the strike price when the option matures. Forex options are usually cash-settled.

The options markets significantly changed following the pandemic. People got laid off from their jobs or sent to work from home and got bored, so they started trading options. But brand new retail traders weren't selling SPY call spreads. They were buying weekly options in high-momentum, and they were doing it in numbers enough to alter the order flow of the entire options market.

Whether you're a value investor or short-term options trader, the game of financial markets ultimately comes down to putting the probabilities slightly in your favor rather than making deterministic calls as to where the S&P 500 will be next month.

Money makes the world go round, as many people are well aware of by now. If you have a measure of wealth, then you also have a measure of freedom and security in your life. Money doesn’t mean living a lavish lifestyle, especially if you want to use it properly and responsibly.

Using the most popular S&P 500 ETF (SPY) to represent the US stock market, this article will look at different ways to manage equity market risk using historical ETF and options data from ORATS Wheel since 2007. We will analyze the following unhedged, hedged and allocation choices:

While advanced trading platforms allow you to customize orders endlessly, most of them still boil down to a few basic types of orders:

Gazing at the trading screen or investing a large amount in the stock market is not enough to improve your trading skill and increase the chance of winning a stock. Rather, gathering proper knowledge, and presence of mind is very important to perform confidently in the trading market.