An iron condor occurs when an option trader combines a bear call spread and a bull put spread. It is essentially combining two credit spreads as one trade.
Iron Condor
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There Will be a Time to Consider a Bear Put Spread
A bear put spread involves buying a put option and selling a lower strike put option against it with the same expiration.
Is Option Gamma as Important as Delta?
Many option traders will refer to option delta as the most important option greek.
Stock Repair Strategy Using Options
Here is one option strategy that can make sense in some cases; the stock repair strategy.
Implied Volatility Has Soared
Analyzing implied volatility and historical volatility is often an overlooked process making some trades losers from the start.
AAPL Stock or Call Options?
AAPL stock is much cheaper to purchase now then it was before its split back in June 2014. And even though it has declined over the last month, it is still rather pricey for many investors.
Option Strangle Anyone?
An option strangle is an option strategy that option traders can use when they think there is an imminent move in the underlying but the direction is uncertain.
Lock in Option Profits with a Butterfly
One of my favorite ways to make adjustments or lock in profits on a profitable positions is to convert the option position to a long butterfly spread.
Outright Call and Put Options
If a trader only buys and sells options outright, he often ignores some of the benefits of using options to create more flexible positions and offset risk.
Short-Term Put Options
The mentality behind short-term put options is probably different than the mentality behind short-term call options.
Short-Term Call Options
Keep in mind that just because the option trader has the right to buy the stock, doesn?t mean that he or she has to necessarily do so. The call option just like a put option can be sold anytime up until expiration for a profit or loss.
Debit Spread versus Credit Spread
Students in my Group Coaching class as well as my one-on-one students ask me all the time how do you decide between buying a debit spread and selling a credit spread? This is inherently a discussion that could fill a thick book so I will just try to give you a few...