Basic options trading strategies to help investors add stock options to their investing arsenal. Discover the building blocks of puts and calls.
Long calendar spreads allow traders to hedge for volatility risk, especially to navigate earnings season or other corporate news events.
Consider straddle/strangle swaps to better position for earnings. Use option strategies and charting tools to help navigate these vexing volatility events.
Looking to supplement returns? Consider selling out-of-the-money options. Unless there are large price swings, these options don’t change much.
thinkorswim platform’s ® Today’s Options Statistics divvies up the market by call and put volume, delta values, historical volatility, and more.
First in a series of brief, instructional articles that start at the beginning and build to combining and applying basic option trading principles in more complex strategies, including spreads.
Do Not Sell or Share My Personal Information
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, a subsidiary of The Charles Schwab Corporation. © 2024 Charles Schwab & Co. Inc. All rights reserved.