al;kdfjal;dkfjafd

You create a diagonal spread when you buy and write options (calls or puts, but not both in the same spread) on the same stock with different strike prices and different expirations. As we will show in the examples in this article, diagonal spreads can be used as capital efficient covered call alternatives…

We explore examples of how to construct vertical option spreads…

A Vertical Spread is an options strategy in which options are bought and an equal number of options of the same type (Puts or Calls) are sold with different strike prices, but with the same expiration date. Vertical Spreads are directional strategies and are either bullish or bearish. Click on this article for more information on how to trade the extremely versatile vertical spread…

In an earlier article, we showed you how you can hedge your stock with "collars," (combinations of covered calls and protective puts). This week, we show how you can hedge your equity portfolio with a bear option spread. This particular hedge is attractive in times such as these when the demand for nominally cheap insurance is driving up the price of the lower strike puts.

Are options too speculative for your portfolio? Do the majority of options traders lose money? Are options a zero sum game? Are you better off selling options rather than buying them? The answers to these and other questions can be found inside…

alkjdflkajlfdk

I am constantly amazed by some of the "facts" I hear about options that are told to me as if they were written in stone. When I try to probe a little deeper to find the source, I usually receive a nebulous answer like "I know it's true, but I don't where I heard it." Well, today I'm going to clear up some of those issues…

Examining the impact of theta and vega on strangles…

strangle 3

Let's examine the characteristics of this killer trade in terms of the greeks…

Today we are going to learn about the straddle's first cousin, the strangle…