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.
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.
With many options trading strategies to choose from, how do you find the right one? Consider a three-step process to help with your decision.
Learn how weekly stock options can help you target your exposure to market events such as earnings releases or economic events.
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.
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.
An index’s settlement can turn a winning position into a losing one. You may want to close your index positions before expiration.
Maybe volatility is low and you believe a breakout is about to happen. But you don’t know which direction price will move. Or maybe you believe the markets are high and you don’t know when they might fall. What options strategies could you 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.
Some option traders dynamically hedge positions, but doing so requires a basic understanding of synthetic positions and put-call parity.
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
With gold futures prices swinging up and down, options traders may have an opportunity to exercise non-directional strategies like straddles and strangles.
Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.
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.
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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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