Looking for opportunities amid a low volatility trading environment? Learn about calendar spreads.
Learn how a collar strategy—a covered call and a protective put—might be a cost-effective way to manage stock risk.
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.
How using Kurtosis to study abnormal market behavior—in particular how it explains the price behavior of options—can aid in your strategy selection.
Can you calculate fear? Certain market measures help traders determine when the market seems “fearful.” Learn to do this for yourself to better evaluate risk.
Ready for a more advanced options trading strategy? We explain vertical spreads (credit and debit).
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.
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.
Arbitrary entry and exit points in futures trading can be futile—learn how to place your trades using a price range based on volatility and probability.
Laddering price, volatility, and time can take covered calls to a new level—look to collect more premium and diversify across vol and time.
These strategies to help you sleep at night by reducing your losses, reducing your effective cost, and reducing the possibility of assignment.
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?
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.
What’s a handy core options strategy that leverages time? The calendar spread. But there’s more to them than just buying and waiting.
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.
When will a stock trend end? There are a few stock chart indicators that make spotting trend reversal warning signs a little easier.
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.
Three of the most popular options strategies on how to exit a winning or losing trade: long options, vertical spreads, and calendar spreads.
Learn to recognize divergences between chart indicators and price action. It’s the first step toward confirming trends.
Consider option delta as one way to narrow the mathematical range when choosing an iron condor strike price.
Looking for a hedge? Consider short-term long put options or volatility trades aimed at protecting stocks from unexpected economic results.
Look beyond options premium collection to additional stock hedging. Consider turning the cash from a naked put sale into an out-of-the-money call purchase.
Explore extreme stock volatility lows for potential opportunities to buy put options for short-term protection or speculative bearish trades to hedge a bullis
Looking to supplement returns? Consider selling out-of-the-money options. Unless there are large price swings, these options don’t change much.
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.
The principles of successful trading are also rooted in the professional side of the card table rather than pure luck. The trick isn’t just knowing when to hold 'em, or fold 'em, but why.
Shorting a stock you no longer like isn't an easy decision. In fact, it can be an expensive decision. Instead, you might turn to the options market and take a closer look at short vertical spreads.
Investors seeking protection from market volatility have contributed to extreme “SKEW” levels in options markets.
Our chief market strategist breaks down the day's top business stories and offers insight on how they might impact your trading and investing.
Picking months and strikes are big decisions for options traders. Do probabilities matter? We think so.
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...
Once you've learned the foundational option spreads—verticals and calendars—and what makes them tick, the next step is knowing when to use them.
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.
Anything can happen in one trade. But over a large number of options trades, high probabilities are what matter most.
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.
Trading stocks over $100 can be tricky under any volatility backdrop. But with the right option spread, any volatility, high or low, will do.
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.
Option strategies for more potential profit, using undefined-risk trades that draw roots from their defined-risk cousins.
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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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