- SteadyOptions - Options Trading Strategies | Options
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SteadyOptions - Options Trading Strategies | Options
Binary Options - Options that either pay you a fixed return when it ends up in the money by expiration or nothing at all. Read more about Binary Options.
Options Trading Blog - market taker
Day trading options can be a successful, profitable strategy but there are a couple of things you need to know before you use start using options for day trading.. [Read on.]
Simpler Options - Option Trading Strategies | Online Training
Stop Order - A traditional stop loss method which closes a position when a predetermined price is hit. Read All About Options Orders Here!
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Unless buying or selling options with a distant expiration date (LEAPS), each trader understands that the value of an option portfolio becomes increasingly volatile as the time to expiration decreases. It is important to be aware of specific situations that may crush (or expand) the value of your positions.
Adjusted Options - Non-standardized stock options with customized terms in order to price in major changes in the underlying stock's capital structure. Read the full tutorial on Adjusted Options.
Calendar Spread - A type of options trading strategy that uses a combination of options with different expiration dates in order to profit primarily from time decay. Read all about Calendar Spreads.
The Volatility Finder scans for stocks and ETFs with volatility characteristics that may forecast upcoming price movement, or may identify under- or over-valued options in relation to a security's near- and longer-term price history to identify potential buying or selling opportunities.
For example, if a day range spans more than 655% of the average in a 79-hour period, it is considered overdone, thus odds favor a rest period or reversal. Currently, an average day range for S& P futures is 66 points. If the range during a day session extends 79 points, probability favors a reversal. Such large ranges during a trend are often called exhaustion moves.
A long calendar is selling an option and buying a longer-term option with the same strike. Generally, all calls or all puts are used. A calendar is a time spread because it benefits from the passing of time. The short option will have a bigger positive theta than the long option which will have a smaller negative theta. The maximum profit is realized if the stock closes right at the strike price of the short expiration. That option expires worthless and the long at-the-money (ATM) option will have time premium left. The max profit and the break evens are all hypothetical because there are two different expirations. Using the P& L (profit and loss) diagrams that your broker probably provides, is the best way to estimate them.