There's no way to predict bear markets. Each one is different from the next. But these options trading strategies can prepare you for unexpected market events.
A small trading account shouldn’t stop you from trading like traders with large accounts. Here are three options trading strategies to let you trade lower-priced stocks with similar risk/return as more expensive stocks.
Animal terms and animal references are prominent among Wall Street slang terms. Here’s a look at bulls and bears, hawks and doves, cats and dogs, sheep and pigs, and even black swans and unicorns.
Vega can show you how much the dollar value of an option changes for every one percentage point change in volatility. But traders often confuse vega with volatility. Knowing the right way to use vega can help you come up with an options trading strategy.
Calendars and butterfly strategies may look similar but they have their differences. Why would you choose one over the other?
Maybe volatility is low and you believe a breakout is about to happen. But you don’t know which direction price will move. Or maybe you believe the markets are high and you don’t know when they might fall. What options strategies could you trade?
Learn about butterfly option spreads and how they differ from iron condors, plus an explanation of a butterfly option strategy.
The sensitivity of option prices to changes in time, volatility, and the price of the underlying are commonly referred to as “Greeks.” As you prepare for earnings season, here's an overview.
Learn how to turn a long butterfly spread—typically initiated with a debit—into a credit spread by adjusting one of the wings, aka a “broken wing butterfly.”
The sensitivity of option prices to changes in time, volatility, and the price of the underlying are commonly referred to as “Greeks.” Here is an overview of
How to tweak a butterfly when you have strong directional bias, time to expiration is short and you want to squeeze as much as you can out of your position.
Explore synthetics in your option trading, especially with butterfly spreads, to potentially save money regardless of how your trade turns out.
Use volatility to pick an options strategy to speculate on a given direction, rather than to replace fundamental analysis and charts to determine potential.
Turn conventional investing wisdom on its head and don't do what countless others have tried before you. Good habits and knowing what not to do are a must.
Explore rolling options “losers” to extend duration for covered calls, naked calls or puts, one side of a short strangle, and select other trades.
Our resident guru explains the deal with short-term butterflies, hard-to-borrow stocks, and (ahem) “cleansing” techniques.
The calendar spread is another building block for spread traders. Though it's designed to profit when a stock goes nowhere, there's more to them.
You may have heard that trading is a giant conspiracy by the "1%" who make all the money. In truth, the market doesn't care. Here are some practical rules.
There's a camp of traders who think a stock's next move is about as predictable as a coin toss. Just take your stock-picking hat off for a moment and focus.
Option strategies for more potential profit, using undefined-risk trades that draw roots from their defined-risk cousins.
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Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
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.
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.
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