Options Trading

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…

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…

If you want to start trading options, I created the ultimate guide to generating income with options in this post. You can also learn about technical analysis for options trading to improve your trade timing. Options Trading Terminology Before you learn how options work, you must know all the basic options trading terminology. If you…

The poor man’s covered call strategy (PMCC) is a fantastic method if you want to trade options for income with minimal capital requirements. The PMCC strategy is a bullish trade; therefore, you should use this strategy when you believe an underlying stock will increase in price. Selling Covered Calls The traditional covered call strategy involves…

The wheel strategy, also known as the triple income strategy, is a consistent way to generate income on the stock market. The wheel combines trading options with stocks to outperform the classic buy-and-hold investing strategy. What is the Wheel Strategy The wheel options strategy is a method that combines the cash-secured put and the covered…

Selling covered calls is a fantastic way to protect your stock investments. What is a call option? A call option is a contract that gives the buyer the right to purchase 100 shares of stock at the strike price. For example, if you buy a call option for stock XYZ with a strike price of…

This basic concept can improve your knowledge as an options trader. What is the break even point of an option? When you buy an options contract, you are purchasing the right to buy or sell 100 shares of stock at a specific strike price. As an options trader, you have the benefit of leverage. When…

A strategy is useless if you lack conviction. What exactly is my SPX trading strategy? I replicate a long SPY portfolio by selling put options on either /MES, SPY, or SPX. Depending on the week, I use a SPY puts strategy and will generally sell to open about 1–2 contracts which are dependent on my…

tastylive is excellent for beginners to learn, but their strategies may not always be great in practice. tastytrade review tastylive produces a lot of content, and their general recommendations about trading options are relatively straightforward. The best thing about tastylive is that their data is based on backtests and qualitative data. Additionally, the tastytrade platform…