Straddle

Risk Management: The Un-Fun, Must-Know Part of Trading January 10, 2022 10:15 AM   |  

Your risk-management strategy could decide whether you survive the next market turn. If you don’t have a trading plan in place, here are some ideas to help you get started.

5 min read  |  thinkMoney Magazine
Twin Tops: How and When to Set Up a Double Calendar January 10, 2022 10:15 AM   |  

Looking to get long volatility with a theta kicker using options? Consider a calendar spread. But if you also want to spread your risk across the price range of a stock, you might scale the twin peaks of a double calendar.

5 min read  |  thinkMoney Magazine
Options Trading Strategy to Consider During Earnings Season: Iron Condors October 7, 2021 10:15 AM   |  

Earnings season can create volatility in price movement. Learn how to spot potential options trade candidates by assessing straddle price versus average earnings moves.

6 min read  |  Trading
Got Vol? Trade Around It. April 5, 2021 10:30 AM   |  

Do the headwinds of time decay turn you off from buying single options on volatile stocks? Find out how you may be able to turn the headwinds into tailwinds by trading those stock moves.

5 min read  |  thinkMoney Magazine
Flexibility and Targeted Exposure: An Intro to Weekly Stock Options February 4, 2021 12:52 PM   |  

Learn how weekly stock options can help you target your exposure to market events such as earnings releases or economic events.

3 min read  |  Options Trading Basics
Looking for a New Asset Class to Trade? The Case for Options on Currency Futures May 29, 2020 3:10 PM   |  

The global foreign exchange (FX) market is deep, liquid, and traded virtually around the clock. If you’re an option trader in search of a new asset class to trade, consider options on currency futures.

5 min read  |  Futures
Vega: It's Not the Number You're Thinking June 30, 2019 11:45 AM   |  

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.

6 min read  |  thinkMoney Magazine
Trading Earnings? Get Earnings Analysis on thinkorswim in a Single Snapshot May 9, 2019 4:00 AM   |  

thinkorswim has developed an interface dedicated to researching the effects that earnings announcements have on the prices of stocks and options.

4 min read  |  thinkorswim Platform
Putting “Too Good to Be True” to Use October 1, 2018 3:00 AM   |  

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.

7 min read  |  thinkMoney Magazine
Return On Capital: The Great Decider October 1, 2018 3:00 AM   |  

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.

3 min read  |  thinkMoney Magazine
Trading Earnings Season? Brush Up on Your Option Greeks July 3, 2018 4:00 AM   |  

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.

5 min read  |  Options Trading Basics
Earnings: Volatility’s Siren Song—Save Yourself From Surprises April 23, 2018 12:00 AM   |  

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.

8 min read  |  thinkMoney Magazine
Capiche: Portfolio Margin Part 4—Risk Management and Margins October 1, 2017 11:00 PM   |  

Nobody wants his or her stock investments to be forcefully liquidated. Protect your portfolio with better estimations and risk management plans.

3 min read  |  Margin
Scalping the Gamma: Dynamic Hedging of Option Positions September 28, 2017 12:00 AM   |  

Learn how to dynamically hedge changes in an option position’s delta in a process known as “gamma scalping.”

5 min read  |  Advanced Options Strategies
Gamma Scalping Intro: Synthetics, Put-Call Parity and Delta-Neutral September 21, 2017 12:00 AM   |  

Some option traders dynamically hedge positions, but doing so requires a basic understanding of synthetic positions and put-call parity.

3 min read  |  Advanced Options Strategies
Are You Missing the Forest for the Trades? July 24, 2017 12:00 AM   |  

Instead of hyper-focusing on one position at a time, look at your entire portfolio and try to figure out a better hedge—here's some tools and tweaks to help.

8 min read  |  Advanced Options Strategies
A Short-Term Fling or Puttin’ On the Ring? July 24, 2017 12:00 AM   |  

Can't decide how long you want to commit to a position? Understanding strategy mechanics can help you align trade duration with your attraction.

8 min read  |  Advanced Options Strategies
Three Clicks From Data to Trade: Economic Indicators July 24, 2017 12:00 AM   |  

Some economic indicators create more noise than others—learn to create trading strategies based on how markets might react to economic data.

7 min read  |  Fundamental Analysis
Swim Lessons: Brush Up On Your Greeks This Earnings Season April 20, 2017 4:00 AM   |  

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

5 min read  |  Options Trading Basics
Options for Trading Consolidation Moves in Gold Futures October 24, 2016 12:00 AM   |  

With gold futures prices swinging up and down, options traders may have an opportunity to exercise non-directional strategies like straddles and strangles.

4 min read  |  Advanced Options Strategies
Embrace the Quiet: Consider Low-Volatility Option Trades June 17, 2015 8:00 PM   |  

Shhh. Consider quiet, low-volatility option buying strategies that could offer limited risk of loss for a miss, and the possibility of a payoff for a hit.

3 min read  |  Advanced Options Strategies
Size Up Option Straddles for a Reading on Earnings Volatility May 20, 2015 8:00 PM   |  

Check out short-term options pricing to gain a sense of how the underlying stock could move around an earnings release. You can track straddles or use the TD

3 min read  |  Options Trading Basics

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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.

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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.

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