Long straddle A long straddle is an options strategy comprised of buying both an ATM call option and an ATM put option with the same strike price and expiration date. It is used when the trader believes the underlying asset will move significantly higher or lower over the options contracts’ lives. The maximum loss is … Read more
What are Long Call Options? A long call option strategy is purchasing a call option with the expectation that the underlying stock will rise. Long call options strategies will necessarily be delta and theta positive. Long call options positions are significant for both seasoned and novice traders because they can be initiated with defined … Read more
What is it? Most beginner options strategies are named by juggling the four words- long, short, call, and put. Understand these four basic terminologies, and half the job is done. Here is what each one of these means- Long: Long is when you buy an option contract (100 shares). Short: Short is when you sell … Read more
What is it? Out of the myriad of options strategies out there, long put strategy is probably the simplest of all. Unlike most strategies, long put involves just one step. Suppose you are bearish on a stock in the next few days. You buy a put option on that particular underlying, and you wait for … Read more
What is a Diagonal Spread? A Diagonal Spread is the options strategy that combines horizontal spread (calendar spread) and vertical spread. It involves simultaneously buying and selling of the same class of options with different strikes and expiration dates. The term “diagonal” comes from the options chain layout where the two options contract with different … Read more
What is debit spreads? Let’s first begin with how options are traded. Just like trading stocks, it is all about minimizing risk and maximizing profits. To forge the ultimate strategy, a trader always indulges in buying and selling options at multiple strike prices. This is what spreads are, the range of the strike prices. However, … Read more
What is it? The whole concept of ratio spread can be deduced from the words it is made of. There are two types of ratio spreads- call ratio spread and put ratio spread. We will be discussing the call spread option in this article. Let’s break it down to have a better understanding. Sometimes, a … Read more
So, you had a conversation with a friend or probably read a book about options. Being a newbie, you search about the strategies to trade options and stumble upon the “wheel options strategy”. Thumbs up to your research work. Now you surf through various websites and intend to learn the strategy. Good news for you, … Read more
Wondering what covered calls are? In this article, we are going to tell you what a covered call is, when you would use it, and how MarketXLS can help you in applying the strategy. What are Covered Calls? Covered calls are a bullish investment strategy. You would usually consider applying the covered calls strategy when … Read more
