Once you’ve mastered the basics of margin trading, you might want to learn how different trader and investor types use it. It can depend on your objectives, risk tolerance, and the products you trade.
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.
thinkorswim has developed an interface dedicated to researching the effects that earnings announcements have on the prices of stocks and options.
Vertical spreads are fairly versatile when making a directional stance. But what if you're stuck in a range-bound market? Consider the iron condor.
Treasury bonds are boring, right? Wrong. For traders, they represent a market that can be bigger than stocks.
Trading success doesn't mean "going for broke," or searching for the next big thing. It's more like pacing yourself at the hippest restaurant in town.
The recent rise in volatility means it could be time to talk about strategies designed to capitalize on elevated volatility levels.
Traders sometimes talk glowingly about thrilling options trading strategies without considering the risks. There are some alternative strategies such as short out-of-the-money verticals that you could consider to better manage your risks.
Return on capital when trading options is different than return on capital when managing investments. Here’s what return on capital means to an options trader.
When developing an options trading strategy, you might consider whether a trade is risk-defined, has positive theta, and is "high probability".
Learn about butterfly option spreads and how they differ from iron condors, plus an explanation of a butterfly option strategy.
TDA Network from Trader TV on thinkorswim® may give you many strategy ideas during the trading day. Watch and listen to learn about making a trading plan, analyze trades, paper trade, and then consider making a trade.
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.
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.
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.
You have a losing trade but don’t want to sell. Here are four option strategies you could use to fix your losing trades.
Consider these options strategies designed to increase your overall odds.
Options on futures are quite similar to their equity option cousins, but a few differences do exist.
Learn how weekly stock options can help you target your exposure to market events such as earnings releases or economic events.
Learn how three trading tools and services can help newcomers and veterans alike with trade selection and risk management.
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.
Learn about gamma, which some traders consider the positive side of negative theta.
Learn how to spot potential trade candidates by assessing straddle price versus average earnings moves.
Can't decide how long you want to commit to a position? Understanding strategy mechanics can help you align trade duration with your attraction.
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 some of the option trading alternatives you can use during earnings season.
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
How to tweak a butterfly when you have strong directional bias, time to expiration is short and you want to squeeze as much as you can out of your position.
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.
Learn how an trading an iron condor can be an effective options strategy during earnings season.
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.
Trading low volume, high volatility swings during the holidays takes practice—start with overnight markets that have similar liquidity and price-movement.
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.
The month of April started with a lot of ups and downs for the equities market, but the underlying tone of trading turned positive once again last week.
When will a stock trend end? There are a few stock chart indicators that make spotting trend reversal warning signs a little easier.
Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.
Maximizing the risk/reward of a defined-risk trade—how to increase the risk-to-reward profile in short vertical 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.
Expand option market learning to weekly double calendars. They can increase in profitability if implied volatility rises.
Consider option delta as one way to narrow the mathematical range when choosing an iron condor strike price.
Only pros care about interest-rate trading, and bonds are boring, right? Not so fast. There’s more to them than meets the eye. Pros don't have all the fun.
Trading earnings announcements can be a fool's game. When volatility is high, trends can break after a company announces. Consider a few volatility tricks.
Not all advice is equal. We break down four classic trading adages-turned myth to examine their relevance, and perhaps their accuracy.
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.”
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.
There's a camp of traders who think a stock's next move is about as predictable as a coin toss. Just take your stock-picking hat off for a moment and focus.
Option strategies for more potential profit, using undefined-risk trades that draw roots from their defined-risk cousins.
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
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.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2020 TD Ameritrade.