Implied volatility usually increases ahead of earnings announcements and then drops after the news release. If you know implied volatility is going to drop after earnings reports, here are three options trading strategies you could trade.
If options and other derivatives are a part of your portfolio, you should learn about the nuances of taxes on options trading, from the Ticker Tape by TD Ameritrade.
Learn how adjusting an options collar strategy—a covered call and a protective put—can help you manage stock risk.
As the front-month leg of a calendar options spread approaches expiration, a decision must be made: close the spread or roll it.
Though some option strategies are quite complex, options education begins with the basics of calls and puts.
Learn how to dynamically hedge changes in an option position’s delta in a process known as “gamma scalping.”
Some option traders dynamically hedge positions, but doing so requires a basic understanding of synthetic positions and put-call parity.
Learn how to structure a trade designed for uncapped profit potential.
Know what you're getting into before putting on that option trade—avoid surprises by educating yourself about the risks and oddities of assignment.
Corporate actions such as stock splits, special dividends, mergers and acquisitions are quite common, but what happens with unexpired options?
An option's value tends to decay as expiration approaches. Learn how to incorporate time decay ("theta") into a trading strategy.
If you have a futures account and understand VIX, you might be ready for a covered call in volatility—long /VX futures and short VIX calls.
These strategies to help you sleep at night by reducing your losses, reducing your effective cost, and reducing the possibility of assignment.
Can you use call options as a substitute for long stock? Learn the benefits and risks of this strategy.
Potential strategies for a depressed VIX—When volatility is low, learn how to hedge a trader's version of "yield" by trading volatility as an asset class.
Having trouble selecting a strike price for an options trade? Learn how the Risk Profile tool can help select options that align with your trading strategies.
Monitor strong spurts of volume and inflated premiums for potential option trading opportunities. TD Ameritrade tools can help.
Just when you though you've heard it all about covered calls, along comes a new reason for traders to rethink this old dog.
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.
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.
Use a covered call options strategy to sell stock, collect dividends, and limit tax liability.
A favorite hedge among options traders, SPX options have one major blemish: they settle the day after trading. Say goodbye to the old, and say hello to SPXpm.
Whatever your time frame, if you’re hedging with options here's a few tricks about how to size things up.
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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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