Options Basics—Strangles

A strangle option strategy involves buying (or selling) an out-of-the-money call, and buying (or selling) an out-of-the-money put with the same expiration. A strangle buyer expects the price of the stock to move significantly outside … read more Options Basics—Strangles

Options Basics—Iron Condor

An iron condor is a trading strategy that uses both a put spread and a call spread. It is similar to a strangle except that it limits profit/loss potential to the difference between the strike … read more Options Basics—Iron Condor

Options Basics—Call Buying Example AAPL

Let’s do a walk-through of buying calls in AAPL, from looking at the chart and determining an entry, to deciding where our stop would be and what our upside target is. With those numbers in … read more Options Basics—Call Buying Example AAPL

Options Basics—What is Delta

Delta is the ratio that compares the change in price of an option to a corresponding change in the stock. It’s easier to understand this way. Look at the image below of DAL stock. The … read more Options Basics—What is Delta

Options Terminology

If you’re new to options trading, the terminology can get a bit confusing. Here are the most common basic options trading terms you’ll run into. We’re putting this up as a sort of options cheat … read more Options Terminology