How would you like to earn a significant return off of a stock that drops in value or stays the same? If so, then consider the naked call strategy. A naked call, or a short call, involves selling an option when you don’t own either the option or the underlying… Read More

How would you like to earn a significant return off of a stock that increases in value or stays the same? If so, then consider the naked put strategy. A naked put, or a short put, involves selling a put option when you don’t have a short position in the… Read More

How would you like to earn a positive return if you think a stock is going to stay flat or swing wildly in either direction over the short term? If so, then you should check out the butterfly spread. A butterfly spread is a multi-leg options strategy that involves… Read More

Before you buy or sell an option, you need to know its strike price. The strike price is the price at which the option can be exercised. Both call options and put options have a strike price. If you buy a call option, then you want the price of the… Read More

As an options contract gets closer to expiration, it naturally decreases in value. That rate of decrease is called theta. Theta is one of “the Greeks,” or statistical values identified by Greek letters that traders use to evaluate stock options. Other Greeks include: Delta – the option’s sensitivity to the… Read More

How would you like to earn a nice return by doing nothing more than letting time increase the value of your position? If so, then you should consider a horizontal spread. A horizontal spread, or calendar spread, involves buying and selling two options for the same underlying stock… Read More

How would you like to make a very healthy return from a stock that drops in value over the short term? If so, then consider the short call strategy. As the name implies, when you short a call you’re selling it up-front. That not only means that you get a… Read More

The idea behind the strategy is to let time decay (or theta) work in your favor. If the price of the stock doesn't move much, you'll make money at the expiration date of the near-term option. In the guide, I'll go over the calendar spread in detail and explain how you can profit from it. Read More

If you think a stock is going down in the near future and you’d like to make some money without shorting it, consider using a bear call spread strategy. A bear call spread (or short call spread) is often better than shorting a stock because you don’t need nearly the… Read More

How would you like to make a very nice return on a stock that you think will go up moderately in the short term? If so, then consider a bull call spread strategy. Read More