Calendar options spreads can be effective during sideways markets and during periods of low volatility. Here’s how to set up and roll a calendar—and a rundown of the risks.
Traders tend to equate high volatility with fear. But volatility can also mean possible trading opportunities. So, instead of avoiding high volatility, learn to use it in your options trading.
Compared to covered calls and other basic options strategies, diagonal spreads don’t get a lot of love. But not only are they relatively straightforward, they’re also flexible and versatile. Here’s the story.
Looking to pick stocks worth trading? You can lay the groundwork for a sound stock selection strategy with a few relatively simple components.
Calendars and butterfly strategies may look similar but they have their differences. Why would you choose one over the other?
Learn how to turn a long butterfly spread—typically initiated with a debit—into a credit spread by adjusting one of the wings, aka a “broken wing butterfly.”
Learn about gamma, which some traders consider the positive side of negative theta.
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