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—Implied Volatility

Implied volatility is one of the key determining factors in an option’s value. Higher volatility equals higher price. During a normal, slowly grinding market, implied volatility is of less concern when trading options, because it … read more Options Basics—Implied Volatility