If you have a directional view on a stock price, buying a vertical spread might be for you. But deciding on strikes and strike widths requires some thought.
An option's value tends to decay as expiration approaches. Learn how to incorporate time decay ("theta") into a trading strategy.
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
Understanding of the options greeks allows you to visualize and estimate the potential performance of a call options trade.
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.
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.
Explore synthetics in your option trading, especially with butterfly spreads, to potentially save money regardless of how your trade turns out.
Option trading risks can differ from stock-only trading. Overcome these hang-ups through practice trades, risk management, and seizing small opportunities.
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.
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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.
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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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