Some option traders dynamically hedge positions, but doing so requires a basic understanding of synthetic positions and put-call parity.
Learn about gamma, which some traders consider the positive side of negative theta.
Learn how to structure a trade designed for uncapped profit potential.
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.
Some economic indicators create more noise than others—learn to create trading strategies based on how markets might react to economic data.
Looking for opportunities amid a low volatility trading environment? Learn about calendar spreads.
Learn how synthetic option positions can be made by certain combinations of calls, puts and the underlying stock.
The size of your position can be a tough choice, and using formulas can help, but don't let theory fool you—stick to what's relevant and what you can control.
Part of our series on portfolio margin, the greeks—theoretical metrics describing how things like stock price, time, and volatility can impact option price.
Thinking of futures as just another asset class, let's start with the basics—here's how to use capital efficiently, speculate, and hedge with futures.
Managing risk variables you didn’t know you could control—lessons learned in 2016 about direction, time, and vol, and what mistakes to avoid this year.
In a low-vol environment, pairs trades may offer unexpected opportunities. Here's how to choose among many combinations of bullish and bearish positions.
Learn how to increase the flexibility of your existing options strategies with weeklys: options that move quickly and live for about a week.
Stocks can be expensive, no doubt, but that doesn’t necessarily mean you can’t participate in rallies. Learn how call options can act as a substitute for stoc
The greeks option traders use are loved by many, but understood by few. Know the false “truths” about option greeks to better manage your trades.
Options collars offer an affordable stock hedge with reasonable upside, which can help you build a larger stock position with much less money.
Sometimes the options market can signal when it’s time to adjust a trade. But how long should options traders stick with an adjustment plan?
Delta is much more than a one-trick pony. Understanding some other tidbits of info delta provides can help a trader select option strikes.
Learn how synthetic options strategies can help traders potentially lower transaction costs, improve price discovery, and more efficiently use capital.
Want to participate in the potential upside of a stock while using only a fraction of the buying power? Here’s how to do it with a long-dated call option.
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.
Income-focused option trades succeed when the market doesn’t move that much. Learn how to recognize income opportunity.
Long call option traders avoid ex-dividend stock inequality by exercising the call and becoming a shareholder of record. Just watch timing and new stock risk.
Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.
Consider option delta as one way to narrow the mathematical range when choosing an iron condor strike price.
Today’s obsession with the “short term” has created a new paradigm for “long-term” investing. It might help to put a trading spin on the long-term view.
Consider straddle/strangle swaps to better position for earnings. Use option strategies and charting tools to help navigate these vexing volatility events.
Monitor strong spurts of volume and inflated premiums for potential option trading opportunities. TD Ameritrade tools can help.
Out-of-the-money call options may be hard to trade when volatility is low, but there are good opportunities for cheaper options trades during market extremes.
Wide bid-to-ask spreads in options are part of the deal during volatile markets. The question to ask is, Why? Blame it on the market makers.
To gauge a stock trend, it's all in the charts. But what about its options? You may not be trading options, but ignore them, and you may be missing the bigger picture.
Traders often think of options in small denominations because that’s how the bid/ask quotes appear. But beginning investors in particular must remember to use a 100x multiplier to help determine correct position sizes.
Basic options strategies can help investors protect portfolios against inevitable market volatility and market crashes.
With IRAs, plenty of stop signs tell you what you can and can’t do with options. Are there workarounds?
I was happy when CBOE VIX futures were added to TD Ameritrade’s thinkorswim® platform. So, it’s not running with the bulls in Pamplona. But I’m a trader...
Just when you though you've heard it all about covered calls, along comes a new reason for traders to rethink this old dog.
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.
thinkorswim’s Strategy Roller™ takes out some of the guesswork for when and how to roll options positions.
Buying calls and puts is great when the stars align. For the spread trader, anything is possible. And the vertical spread is all where it begins.
Option prices can speak louder about the state of a stock than most analysts. You just have to listen and understand what they're trying to say.
How do you know when a consolidating market is about to trend? Consider using the TTM Squeeze indicator to help you decide if a market is going to switch.
Options greeks can help measure how much an option might gain or lose—and help you decide how much risk you’re willing to take.
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.
Whatever your time frame, if you’re hedging with options here's a few tricks about how to size things up.
A guide to weeklys: Volume is swelling, and traders are using weekly options to speculate on very short-term moves, or simply as a hedge.
Before buying or selling call and put options, check the alternatives. The vertical spread is a simple solution to the problems short naked options pose.
Diversification approaches for active traders to hedge non-systematic risk across spreads, including directional risk and time and vol.
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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.
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