Futures options give you several advantages over equity options, including tax advantages and minimal margin requirements. The Benefits of Trading Options on Futures Futures options may sound intimidating, but they are an amazingly efficient way to trade options. One of the primary benefits is you get to utilize span margin, which allows you to minimize…
The financial market is not constant. Traders often have to go through various market conditions. So, if you are a trader, you must have a diverse set of strategies that can suit different needs. Whether the market is bullish, bearish, or moving sideways, there are strategies that can be used to gain profit in different…
In the options trading world, strategies have various names, such as the jade lizard. The popular options trading financial network Tastytrade often talks about this trade, so let’s dive into how the jade lizard strategy works. What is the Jade Lizard Options Strategy The jade lizard options strategy is a bullish options selling strategy that…
The short put options trading strategy is an excellent way to generate passive income on the stock market. A short put strategy has a high probability of profit, meaning you will win most of your trades. However, even if you win more than 80% of the time, it only takes one bad trade to ruin…
When you place orders for options trades, there are various order types that you must know. Sell to open vs. sell to close orders let your broker know whether you are opening a trade or closing an existing trade. This article will discuss when you should use each order type and why it is essential…
James Cordier’s hedge fund lost $150m from selling options. His investors received an email stating they had lost all their money and owed more to cover a margin call. He then recorded a cringe-worthy apology video where he apologized for ten minutes about how bad he felt. You must learn about the OptionSellers blow up…
SPX and SPY both track the S&P 500 index, but these two financial products have significant differences. The products have different options settlement, contract sizes, and tax treatments. If you are interested in trading the S&P 500, you must understand the differences between the SPX vs. SPY. First, What is an Index A stock index…
Discover the difference between IV rank and IV percentile and how you can add IV rank to the thinkorswim platform. What are Implied Volatility and Historical Volatility Before we get into implied volatility rank (IVR), we must understand implied volatility (IV) and historical volatility (HV). HV is also known as realized volatility. The implied volatility…
The concept of compound interest is the backbone of creating wealth with your investments. The idea is that you buy assets that pay you, then take that earned money, and put it in more assets. Eventually, you will notice a snowball effect since your money consistently works to buy you more assets. The best way…
If you are learning about selling options and are unsure whether the iron condor or iron butterfly is best, you have come to the right place. Both of these strategies are similar, but there are some differences you must understand before deciding which one you should employ. What Are Iron Condors and Iron Butterflies? Iron…
Access Our Free Trading Journal, Scanners, & More!
– Download our free trading journal template
– Access our custom scanners and watchlists
– Access our free trading course and community!
