Delta: A Little Goes a Long Way September 30, 2019 10:15 AM   |  

Delta contains information that matters most when you are looking for a profit. But there is more to delta.

3 min read  |  thinkMoney Magazine
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
Singing the Low-Volatility Blues? Try Calendar Spreads April 15, 2019 4:00 AM   |  

Learn how a long calendar spread can be effective in a low-volatility trading environment.

4 min read  |  Advanced Options Strategies
What’s Hot and What’s Cool April 1, 2019 3:00 AM   |  

Useful thinkorswim tools you can use are the Heat Map, volatility calculation and Mobile Trader. Find out which stocks are moving, different ways to calculate volatility and share charts on Mobile Trader.

6 min read  |  thinkMoney Magazine
Calendar vs. Butterfly: The Ultimate Premium Smackdown January 7, 2019 3:00 AM   |  

Calendars and butterfly strategies may look similar but they have their differences. Why would you choose one over the other?

6 min read  |  thinkMoney Magazine
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
Pile on With Multi-Spread Organic Trading October 1, 2018 3:00 AM   |  

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?

8 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
Vol Whisperer: Mean Reversion—What It Means or Doesn't Mean January 7, 2018 11:00 PM   |  

Do you know how to measure mean reversions? It's a popular investment strategy used by market traders around the world. Find out how you can use it.

2 min read  |  Advanced Options Strategies
Derivatives With a Twist: Options on Futures vs. Equity Options December 6, 2017 11:00 PM   |  

Options on futures are quite similar to their equity option cousins, but a few differences do exist.

6 min read  |  Advanced Options Strategies
Neutral Spreads Get Tasty: Diagonals and Iron Condors October 1, 2017 11:00 PM   |  

Are you getting the most out of your iron condor stock trades? Double diagonals could help you do just that. Learn more about options trading.

9 min read  |  Advanced Options Strategies
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
Price Action vs. Price Erosion: The Positive Side of Negative Theta September 7, 2017 12:00 AM   |  

Learn about gamma, which some traders consider the positive side of negative theta.

5 min read  |  Options Trading Basics
Going on Strike: Consider Widths when Buying Vertical Spreads August 3, 2017 12:00 AM   |  

If you have a directional view on a stock price, buying a vertical spread might be for you. But deciding on strikes and strike widths requires some thought.

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
Calendar Spreads: Options Strategy for the Dog Days of Summer July 13, 2017 12:00 AM   |  

Looking for opportunities amid a low volatility trading environment? Learn about calendar spreads.

4 min read  |  Advanced Options Strategies
Capiche? Portfolio Margin Part 2: Greeks, Unveiled April 16, 2017 11:00 PM   |  

Part of our series on portfolio margin, the greeks—theoretical metrics describing how things like stock price, time, and volatility can impact option price.

2 min read  |  Margin
The Myth of Delta Neutral (and Other Greek Tales) July 5, 2016 12:00 AM   |  

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.

7 min read  |  Advanced Options Strategies
Exploring Your Options: Knowing When to Adjust a Trade (Pt 2) June 23, 2016 12:01 AM   |  

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?

3 min read  |  Options Trading Basics
Really Pretty Real: Understanding Synthetic Options Strategies, Pt 1 April 18, 2016 12:00 AM   |  

Learn how synthetic options strategies can help traders potentially lower transaction costs, improve price discovery, and more efficiently use capital.

4 min read  |  Advanced Options Strategies
You Asked, We Answered: Getting Started with Options March 9, 2016 11:00 PM   |  

Industry data shows options trading numbers are growing. But many stock traders remain hungry for options trading basics. Here’s how to get started.

4 min read  |  Options Trading Basics
Rethink Options: Aim for Income by Embracing Market Inaction November 23, 2015 7:00 PM   |  

Income-focused option trades succeed when the market doesn’t move that much. Learn how to recognize income opportunity.

4 min read  |  Options Trading Basics
Option Strategy Throw Down: Selling Strangles vs Iron Condors October 7, 2015 8:01 PM   |  

Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.

5 min read  |  Advanced Options Strategies
Option Strategy: Slay Volatility with Weekly Double Calendars September 8, 2015 8:01 PM   |  

Expand option market learning to weekly double calendars. They can increase in profitability if implied volatility rises.

3 min read  |  Advanced Options Strategies
Choosing Credit Spreads vs. Debit Spreads: Let Volatility Decide July 15, 2015 8:00 PM   |  

Align your option vertical spread with the level and direction of implied volatility to position your trade for success.

2 min read  |  Advanced Options Strategies
Option Strategies to Help Protect Your Portfolio February 5, 2015 8:00 AM   |  

Basic options strategies can help investors protect portfolios against inevitable market volatility and market crashes.

5 min read  |  Portfolio Strategy
Trader Trio: Three thinkorswim® Tools You Should Know April 1, 2014 5:05 PM   |  

Even if you're a seasoned thinkorswim^®^ user, odds are, some of its tools are unfamiliar. Dig in for some features with a big bang for your buck.

6 min read  |  thinkorswim Platform
Trading on Time Decay: How to Approach Calendar Spreads March 5, 2013 11:16 AM   |  

Calendar spreads can help you turn options time decay into profit.

5 min read  |  Advanced Options Strategies
Killing Time: A Calendar Spread Trading Primer March 1, 2013 4:09 PM   |  

The calendar spread is another building block for spread traders. Though it's designed to profit when a stock goes nowhere, there's more to them.

13 min read  |  Advanced Options Strategies
Special Focus: Vertical Spreads. Up, Down ... Who Cares? January 1, 2013 4:35 PM   |  

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.

11 min read  |  Advanced Options Strategies
Decode the Greeks: Ancient Alphabet Helps You Trade Options July 11, 2012 3:39 PM   |  

Options greeks can help measure how much an option might gain or lose—and help you decide how much risk you’re willing to take.

5 min read  |  Options Trading Basics
Markets Move. Get Over It. An Options Volatility Primer July 1, 2011 4:50 PM   |  

Without stock and options volatility, there are no trading opportunities. So to revere it rather than fear it–you need just need to “get it.”

13 min read  |  Advanced Options Strategies
Weeklys: Trading Short-Term Options in the Red Zone January 1, 2011 8:18 AM   |  

A guide to weeklys: Volume is swelling, and traders are using weekly options to speculate on very short-term moves, or simply as a hedge.

7 min read  |  Advanced Options Strategies
Stepping up to Vertical Spreads, The Naked Option Alternative January 1, 2011 7:27 AM   |  

Before buying or selling call and put options, check the alternatives. The vertical spread is a simple solution to the problems short naked options pose.

7 min read  |  Advanced Options Strategies
Not Your Daddy's Diversification: Hedging Risk Like a Trader January 1, 2011 6:34 AM   |  

Diversification approaches for active traders to hedge non-systematic risk across spreads, including directional risk and time and vol.

7 min read  |  Advanced Options Strategies
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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.

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.

The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. 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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