Options are financial instruments that give investors the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and date. They can be a useful tool for managing risk in a diversified investment portfolio. If you are a seller of options, this can provide an income stream or be

Trading covered strangles is a popular strategy among options traders looking to profit from stock price movements while mitigating potential risks. In this blog post, we’ll explore the basics of a covered strangle trade, how it differs from a covered call, and how to select the right stocks for a covered strangle trade. We’ll also

The trader who uses this strategy is looking for a stock price that will rise modestly during the life of the near-term option and then fall when the far-term option expires. On the other side of the coin, they hope for a significant increase in implied volatility levels. Quick Takeaways Here are 5 quick points

A Short Calendar Put Spread is an options trading strategy that involves buying and selling two sets of puts with different expiry dates to create a net credit for the trader. It is used when traders expect there to be a significant movement in the price of the underlying security, but are uncertain whether it