Options Trading

The zero-cost collar has become a widely used means of wealth insurance for executives whose compensation is based heavily on their company’s shares. Read more

Selling cash-secured puts is a great way to lower the cost basis of a stock or ETF you wish to purchase, or to simply create income on a consistent… Read more

The diagonal bear collar is ideal for traders who see an extended decline ahead for the underlying stock, but have less clarity on short-term direction. Read more

A diagonal bull collar is set in the same fashion as a traditional collar, but with a key difference in the expiry of the options. Read more

The reverse collar strategy allows traders to maintain a long-term short position, write premiums against it, and all but eliminate risk. Read more

Options industry data shows a trend of investors typically buying options with just a 33% chance of success. Read more

The collar strategy – involving a covered call with a put purchase thrown in for insurance – may be the ultimate “fail-safe” of the options world. Read more

The call diagonal ratio backspread can make money in strongly trending markets – either up or down – as it’s structured to profit from volatility. Read more

Investment success comes from process. But at the same time, randomness can teach us the wrong lessons. Read more