Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.
First, the Expected Move. The Expected Move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to see where real-money option traders are ...
What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...
Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, ...
Condors are versatile options trading strategies that provide more opportunities to profit. An options trader can set up a condor or iron condor to profit from a sideways market or volatile one.
The Simplify Enhanced Income ETF uses options spreads to generate higher yields, but recent active trading strategies have led to significant losses. Retail investors must distinguish between fixed ...
Subscribers to Chart of the Week received this commentary on Sunday, September 17. While we’ve covered 0DTE options on our site and in this space before, we thought it’d be educational to share a ...
As Schaeffer's Investment Research is not affiliated with Robinhood, this article can only provide general steps on how to buy a put debit spread on Robinhood. However, keep in mind that financial ...
Bull call spreads involve buying and selling call options at different strike prices. This strategy caps potential losses to the net debit paid while also capping gains. Used by investors expecting ...
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...
Simplify Enhanced Income ETF is an actively managed fund that uses options plays to generate income, selling option credit spreads rather than covered calls. The fund targets a delta range of 25-30 ...