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Options

Singing the Low-Volatility Blues? Try Calendar Spreads

In last week's article, Scott Connor, my Swim Lessons co-host introduced the calendar spread, a risk-defined options strategy involving the sale of a short-term option along with the purchase of a longer-term option of the same type and strike. Scott laid out the basics— delta, theta and vega— and explained how they can help us interpret the effects of time ...

March 23, 2017

Double Calendars: Is This the Right Strategy for You?

If you are looking for an option strategy that is designed for a lower-volatility environment where the underlying price action gravitates towards either ...

March 16, 2017

Swim Lessons: Options Strategies for Quiet Markets

One of the advantages that options offer is the potential to profit in an upward, downward, or range bound ...

March 9, 2017

Rugby and the Art of Options Trading

I played rugby in college. There’s an old quote I use when explaining the sport to a skeptical newcomer. I like to think that it applies to options trading as well...

March 2, 2017

Swim Lessons: How Volatility and The Rule of 16 Can Offer Perspective

For option traders, volatility can make or break a trade. 'The Rule of 16' is another method that offers perspective on volatility measurements...

February 28, 2017

Know Your Options: The Basics of Calls and Puts

One of the main things that makes options attractive to investors is the flexibility they can provide during a variety of market conditions. Regardless of whether...

February 24, 2017

Turning a Short Option Into a Risk-Defined Vertical

Let’s say you have been selling naked puts, and the market has made an extended move higher in your favor. Chances are, you are getting a little nervous. ...

February 23, 2017

Vertical Credit Spreads: Your High-Probability Trade?

In our daily Swim Lessons sessions, we aren't above the occasional sports analogy. Since my co-host, Scott Connor, is an avid tennis player, that sport is a popular ...

February 16, 2017

Do Vertical Spreads Offer A Better Risk-Reward Than Single Options?

Many investors and traders venturing into the world of options begin by learning about single-legged options strategies. With education, persistence and ...

February 9, 2017

Greek Graphs Tell the Story of Call Strategies

Call options are complicated because there are a lot of moving parts. If you’re new to options, you may not realize that there’s more to them than just ...

February 2, 2017

DIY Guide to Technical Analysis: Indicators & Oscillators

Identifying trend, support and resistance levels, and price patterns leaves a lot up to the discretion of the trader. Some traders prefer ...

January 26, 2017

DIY Guide to Technical Analysis: Price Patterns

Price patterns are probably the most recognizable technical analysis technique. This may be because of their simplicity. However, some traders make them ...

January 26, 2017

Ready to Go Vertical? Options Spreads with Versatility

Feeling pretty experienced with trading long calls, long puts, and writing covered calls? Vertical spreads are one of the building blocks of options trading, and they can ...

January 24, 2017

DIY Guide to Technical Analysis: Entries and Exits, Bounces and Breaks

Charts can help technicians identify potential buying and selling opportunities, including those signaled by support ...

January 12, 2017

DIY Guide to Technical Analysis: Support and Resistance

It’s important to identify general trends, but technicians seek to understand why trends happen, or the investor behavior that creates trends. Technicians ...

January 5, 2017

DIY Guide to Technical Analysis: Chart Basics

Investors use a variety of methods to identify and evaluate investing opportunities. Two of the most common are technical analysis and ...

December 7, 2016

’Tis the Season to Be Careful: Trading in Holiday Markets

It’s late December, and you’ve taken the last two weeks of the year off. The kids are visiting friends, your spouse is out doing some shopping, and you’re home alone ...

November 23, 2016

Volatility Update: Giving Thanks to VIX and Other Volatility Indexes

Thanksgiving. It’s time for turkey, yams, and pumpkin pie! But Thanksgiving is about much more than the ...