Stock options offer a variety of strategies that traders can use to maximize returns, manage risk, or generate income. Among the most popular of these strategies are covered calls and naked calls. While both involve writing (selling) call options, they differ significantly in terms of risk exposure, potential returns, and overall strategy. This paper explores […]
Stock options are a powerful financial instrument that can offer both high rewards and significant risks. Understanding the basics and terminology of stock options is essential for anyone interested in trading or investing in this complex market. In this comprehensive guide, we’ll explore what stock options are, how they work, and the key terms you […]
Options trading is a complex but potentially rewarding endeavor. Traders often employ various strategies to maximize gains and minimize losses. One essential aspect of understanding options is grasping the concept of option Greeks. These metrics provide insights into how an option’s price might change concerning different factors. In this comprehensive guide, we delve into the […]
In the world of stock trading, investors often find themselves balancing the desire for potential gains with the need to protect against losses. One popular strategy employed by traders to achieve this balance is known as a “collar.” A collar is a combination of options contracts used to limit the potential losses and gains on […]
A collar option strategy is an options strategy that involves buying stock, stock futures, or options to create a position that has downside protection and the potential for profit if the price of the underlying asset rises. A stock collar strategy is a combination of covered call and long put options designed to limit losses […]
Gold futures are one of my favorite things to trade. I prefer to sell premium as opposed to buy premium when I am trading gold options. Typically I use naked puts, naked calls or strangles. You can also use iron condors and credit spread is you prefer defined risk. Sometimes I will use spreads, but […]
With the market moving up and into resistance I am trying to stay active without taking a lot of risk. Of course, trying to keep risk down also means taking less profit. As I look at my goals for the 2023 members portfolio, I am up pretty good so far in 2023 and an comfortable […]
What is a Short Strangle and Why would you place one? It is important to understand how a short (naked) call and a short (naked) put work before you commit to placing your first strangle. Why? Well because a strangle is basically the same as selling either a short call or a naked put as […]
The Short (Naked) Call Shorting or selling a call is the opposite of buying a call. When you buy a call you typically expect or want the underlying to go up in price since you have purchased the right to buy the underlying at a specific price. When you short a call you are giving […]
The Long Put The Long Put is another of the most basic of options strategies you can use when trading options. It is easy to understand and you know your risk when you enter the position. Most people do however, forget about the effect of Delta on the position. When purchasing an option, I like […]
