T.J. Neil has been with TD Ameritrade since 2014. As Senior Trading Specialist with TradeWise Advisors, Inc., a registered investment advisor affiliate of TD Ameritrade, T.J. and his team provide an option advisory service for the self-directed individual investor. T.J. and his team are constantly looking for new trading opportunities, managing open trades, and providing dedicated client support. T.J. began trading on the floor of the CBOE in 1993, and has experience trading both equity and commodity options. T.J. holds the Series 3, 7, 63 and 66 licenses.
The recent rise in volatility means it could be time to talk about a risk-defined strategy designed to capitalize on elevated volatility levels in a range-bound market: the short iron condor.
There is a way to turn naked options into risk-defined positions to lower the margin requirements and free up capital at the same time. The strategy: a vertical spread.
It's your holiday vacation—the perfect time to log in to your account and make some trades, right? Here are some things you should consider.
Are you an option looking for a strategy designed for a lower-volatility environment?
Before you trade or invest, it’s important to know the contract specifics—multipliers, delivery specifications, and tick sizes.
Learn to calculate profit and loss and assess risk parameters on vertical option spreads.
Learn how to spot potential trade candidates by assessing straddle price versus average earnings moves.
Learn how a collar strategy—a covered call and a protective put—might be a cost-effective way to limit risk.
Learn how an trading an iron condor can be an effective options strategy during earnings season.
One option strategy designed for a lower-volatility environment you may want to consider is the double calendar.
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TradeWise Advisors, Inc. and TD Ameritrade, Inc. are separate but affiliated firms. Advisory services are provided exclusively by TradeWise Advisors, Inc. and brokerage services are provided exclusively by TD Ameritrade, Inc. Learn more about TradeWise by visiting tradewise.com.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
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