Options Trading

A strip straddle is a limited loss/unlimited gain proposition that profits from a steep decline in the underlying security. Read more

What’s the ideal way to protect profits while still participating in some additional market upside? Hint: It’s not buying put options. Read more

A reverse covered straddle is a bearish strategy that generates income from a short stock position. Read more

A covered straddle is equivalent to two covered calls, subject to twice the profits if the stock moves higher, and twice the losses if it falls steeply. Read more

A short calendar straddle is employed when the trader expects an immediate explosive move in the underlying security, but is unsure which way it will go. Read more

The long calendar straddle is a layered straddle strategy that profits from little volatility in the near term, followed by an explosive move later on. Read more

The iShares Brazil ETF is currently oversold on a short-term basis, creating an ideal setup to sell puts. Read more

The short straddle is also referred to as a “naked straddle,” because it’s an uncovered trade and therefore open to theoretically unlimited losses. Read more

Many investors buy stocks by using limit orders. I prefer to get paid while I wait for a stock to reach my chosen price. Read more