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.
Short selling, short interest, naked short selling are among terms some investors had scarcely paid attention to. But a flurry of apparent short squeezes in 2021 called attention to shorting. Here are some of the top questions answered.
Consider these six strategies for bite-sized trading
Learn about the 1099-B, how taxation on options trading works, and how TD Ameritrade clients can use GainsKeeper to help determine cost basis.
Selling covered calls and cash-secured puts can help investors generate additional income, increase their probability of success, decrease their volatility of returns, and lower their overall risk when compared to buying stock.
As long as there have been markets, there have been occasional market bubbles. Here’s a look at a few of them, and what today’s investors can learn about avoiding the excesses of exuberance.
If an options position isn’t going the way you thought it would, you might consider rolling it using the thinkorswim Strategy Roller®. It could take out some of the guesswork for when and how to roll options positions.
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.
Selling covered calls is a neutral to bullish trading strategy that can help you make money if the stock price doesn't move.
The success of every trade involves three elements: the entry, the exit, and what happens in between. Here’s a look at the trade life cycle.
The monthly U.S. Employment Situation report—commonly called the jobs report—is perhaps the most closely watched fundamental indicator for traders and investors. Here’s why.
Have you ever thought about how to trade options? Consider exploring a covered call options trade.
Earnings season can be a time of higher-than-typical volatility, which can mean an increase in risk as well as opportunity. Learn some of the options trading strategies you might use during earnings season.
If the markets are crashing, do you close your positions or do you take advantage of opportunities? Whether you are a stock investor, volatility trader, or speculator, there may be a strategy worth pursuing.
Actively trading in an IRA may be a way for some people to attempt to manage risk and potentially increase their income stream in retirement—while enjoying certain tax-deferred benefits.
One of the benefits of joining an investment club is it's a fun way to learn to buy and sell stocks.
Pairs trading is a trading strategy that involves two stocks in the same sector. There are different ways to create a pairs trade, whether you are pairing two stocks, stocks and ETFs, stocks and options, or options and options.
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.
Learn how a collar strategy—a covered call and a protective put—might be a way to manage stock risk.
You may want to hedge some of your individual positions. Here are three
volatility-based options strategies you could use if you have stock risk, sector risk, or global risk.
Learn how a covered call options strategy can attempt to sell stock at a target price; collect premium and potentially dividends; and limit tax liability.
Learn the difference between implied and historical volatility, and find out how to align your options trading strategy with the right volatility exposure.
You may be able to trade options in an IRA. Learn more about IRA options trading in this article.
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.
Options on futures are quite similar to their equity option cousins, but a few differences do exist.
When stuck in a low-volatility environment, check out the term structure. You might consider alternative covered call strategies.
Know what you're getting into before putting on that option trade—avoid surprises by educating yourself about the risks and oddities of assignment.
Learn how a collar strategy—a covered call and a protective put—might be a cost-effective way to manage stock risk.
Learn how synthetic option positions can be made by certain combinations of calls, puts and the underlying stock.
Overtrading can be a killer to your P/L. The trick is to trade
consistently and always know what the markets—and your positions—are doing.
Covered calls are one way to earn income from stocks you own. Learn more about how to sell covered calls and strategically select strike prices.
With an understanding of terms and definitions involved in synthetic options, how do traders begin applying synthetic options in the most efficient way?
Learn how synthetic options strategies can help traders potentially lower transaction costs, improve price discovery, and more efficiently use capital.
What you should know about rising interest rates, and practical trading strategies for dealing with them—approaching Fed decisions in four different arenas.
Industry data shows options trading numbers are growing. But many stock traders remain hungry for options trading basics. Here’s how to get started.
A trader's job can be easier than an average mutual fund manager's—A few reasons the playing field for traders is more than leveled.
There’s a way to generate “income” from dead investments, even if they aren’t optionable—how to hedge mutual funds with options.
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.
Looking to supplement returns? Consider selling out-of-the-money options. Unless there are large price swings, these options don’t change much.
Misconceptions hound the option market and those who’d like to elevate their trading to include option contracts. Taking that first step often hinges on shedding these four myths.
If you choose to use trading as a source of retirement income, it’s important to keep in mind the risks that come along with the potential rewards.
The protective collar can help diversify an investor’s portfolio by combining two basic options strategies, covered calls and married puts.
The covered call is one of the most widely-used portfolio diversification tools, but it’s important to understand how it works.
Two basic options strategies can help you be a better kind of bullish: covered calls and cash-secured puts.
Who’s the mysterious person behind the curtain who takes the other side of your trade? Market makers are paid to take risk and provide market liquidity. Find out how this helps you.
Learn how to use select options strategies to earn income on your stock portfolio.
Options aren’t always for speculation. They can be used for portfolio protection.
We know stocks move up and down. But much of the time, they're range-bound. The calendar spread takes advantage of that at a fraction of the stock price.
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.”
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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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