Articles tagged with "stock options"

Learn to Soar: The Long Iron Condor

Do you remember when we discussed bear call spreads and bull put spreads? To an options trader, this seemingly backward-based lingo instantly translates to an options trade. Sometimes though, the lingo can get tricky, such as when using iron condors. A bear call spread involves selling a call, while simultaneously buying a higher priced call […]

Back to Basics: The Bear Put Spread

We’re all quite familiar with the basics of options trading – at least, if you’ve found yourself using Option Party for its advanced tools and probabilities, you likely know that buying call options are bullish, while buying put options are bearish. However, too many new investors opt to buy “naked” calls and puts, or single […]

Back to Basics: The Bull Call Spread

If you’ve found Option Party, you likely understand the basic function of options. For instance, buying a call option is bullish and buying a put option is bearish. However, another basic strategy that new options traders often overlook is referred to as spreading. Spreading is an excellent way for investors to make directional bets or […]

Get Bearish With Call Spreads

Often times when traders hear the term “call spread” they think of the more traditional bull call spread. This bullish trade is likely the first spread thought of because it contains the word “call,” which is generally perceived as bullish, while puts are regarded as being bearish. But just like we showed how put spreads […]

Don’t Forget About Put Options When Getting Long

The stock market is often compared to the casino. All too many times, some traders have found themselves wildly speculating about a potential stock or move in the broader market. This speculation essentially boils down to a bet on whether stocks will go up or go down. When it comes to the options market, there […]

Protect and Profit: How a Collar Trade Can Do Both

Like the long straddle trade – which involves traders purchasing both a call and a put on the same security, at the same strike price on the same expiration date anticipating a high-volatility event – the collar trade is often overlooked. The long collar trade – which involves owning a chunk of stock, selling calls […]

Can’t Decide, Long or Short? Saddle Up for a Straddle Trade

We’ve all been there. We have a feeling the market or a particular stock is going to make a big move, but we can make a viable case for each direction. The stock market is overbought, so a pullback seems reasonable. That said, what catalyst will stop the indices from powering higher? How about when […]

Picking Your Perfect Trade Is Easier Than You Think

Picking Your Perfect Trade Is Easier Than You Think Earlier this month, we looked at how important it is for an investor to zoom out, in order to zoom in when it comes to trading. Meaning that in order to find the best trade for a given bias, it would be most prudent to first […]

Down the Rabbit Hole With Options: Searching for Profits

Imagine this: You’re either long or looking to get long equities and in order to lower your cost basis, collect some income and limit your downside risk to a certain extent, you plan to sell calls against your stock position. But instead of pulling up the nearest options chain and picking a random strike price, […]

Fighting for Protection: Why Options Give Investors a Leg-Up in This Market

Often times, investors find themselves in precarious situations when it comes to the stock market. It impacts all kinds of investors too. Short-term, long-term, those searching for income, those screening for day trades and the ones looking for multi-week or multi-month swing trades. It’s the beauty of the markets; investors of all shapes, sizes and […]

1 2