When trading options, it can be helpful to assess the probabilities before making a decision to enter a trade.
Trying to select the right options strategies, strikes, and expirations? Learn how to rank volatility using IV percentiles and see if changes are normal or unusual.
Three options strategies on how to exit a winning or losing trade: long options, vertical spreads, and calendar spreads.
Calendar options spreads can be effective during sideways markets and during periods of low volatility. Here’s how to set up and roll a calendar—and a rundown of the risks.
The value of an option tends to decay as expiration approaches. Learn about three options trading strategies that target time decay (“theta”).
thinkorswimWeb is a browser based trading platform that offers traders a streamlined experience for trading stocks, futures, forex, and options.
Compared to covered calls and other basic options strategies, diagonal spreads don’t get a lot of love. But not only are they relatively straightforward, they’re also flexible and versatile. Here’s the story.
Volatility affects options prices to some extent but avoid focusing on it to map your strategies.
What is a spread trade? It depends on the products you trade. For a stock trader it could be a pairs trade, and for an options trader there are plenty of ways to put on a spread trade.
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.
Explore options statistics on thinkorswim—implied & historical vol and percentiles, the Sizzle Index, and the put/call ratio. Learn how options stats can help traders and investors make more informed decisions.
thinkorswim has developed an interface dedicated to researching the effects that earnings announcements have on the prices of stocks and options.
Learn how a long calendar spread can be effective in a low-volatility trading environment.
Calendars and butterfly strategies may look similar but they have their differences. Why would you choose one over the other?
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.
What does it take to call yourself a professional options trader? A professional trader uses different options trading strategies, has been through different market types, and has enough trading capital to withstand losses.
Are you worried about the Dollar? Discover ways to leverage volatility, inter-market correlations, and overall bias to help you make smarter decisions.
With the earnings calendar tools available on the TD Ameritrade thinkorswim Platform, you can be in the know when it comes to the earnings season.
TD Ameritrade’s updated markets calendar can help you stay on top what’s going on in the markets including earnings, dividends, IPOs, economic events, & more
Are you getting the most out of your iron condor stock trades? Double diagonals could help you do just that. Learn more about options trading.
Instead of hyper-focusing on one position at a time, look at your entire portfolio and try to figure out a better hedge—here's some tools and tweaks to help.
Learn about earnings calls—what they are, how to join, and why they’re important.
Looking for opportunities amid a low volatility trading environment? Learn about calendar spreads.
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
Calendar spreads, an options trading strategy, could be the answer if you are looking for high probability opportunities amid a low volatility trading environment. Learn more about option opportunities in a quiet market.
Learn how to increase the flexibility of your existing options strategies with weeklys: options that move quickly and live for about a week.
The DOL has decided to allow trading options in IRAs—learn more about strategies that can be used to manage risk and potentially generate income.
Weeklys on SPX: Now options traders have even more toys to play with... and more to chew on. Find out about them before changing your trading strategy.
The calendar trade is a strategy that belongs in every trader’s arsenal, partly because calendars are easily adjusted, and also handy for weekly options.
Zero skew, or even negative skew, can be favorable. Once skew starts rising, options traders might want to think twice before entering a calendar spread.
For most traders, fear and uncertainty are primary factors that drive volatility in markets higher and lower.
Long calendar spreads allow traders to hedge for volatility risk, especially to navigate earnings season or other corporate news events.
Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.
Three of the most popular options strategies on how to exit a winning or losing trade: long options, vertical spreads, and calendar spreads.
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.
Look to futures market calendar spreads and intermarket spreads to potentially lower the risk of fast-moving, directional markets.
Choose adjustments for losing trades that are true to your market outlook, risk tolerance, and trading style.
Expand option market learning to weekly double calendars. They can increase in profitability if implied volatility rises.
Explore rolling options “losers” to extend duration for covered calls, naked calls or puts, one side of a short strangle, and select other trades.
The nuts and bolts of futures calendar spreads are a bit different than their equity-option cousins.
Once you've learned the foundational option spreads—verticals and calendars—and what makes them tick, the next step is knowing when to use them.
Vertical spreads and calendar spreads are designed to profit from a trend or the passage of time. Combining them can open up a whole new world for traders.
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.
If the quants are making all the money these days with high-frequency trading, what’s it gonna take to compete? Beat them at their own game.
Without stock and options volatility, there are no trading opportunities. So to revere it rather than fear it–you need just need to “get it.”
At some point in your trading career, you’re going to lose—lose on a trade, on a string of trades, or miss out on a rally. Here are a few tricks for success.
Diversification approaches for active traders to hedge non-systematic risk across spreads, including directional risk and time and vol.
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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.
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