Derivatives like options can be risky securities to trade especially if you don’t have a strategy. For many traders during the pandemic years, options were used to speculate on volatile stocks. But ...
Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.
Covered puts involve holding a short position in a stock while also holding the corresponding number of shares, whereas cash secured puts involve selling put options backed by enough cash to purchase ...
Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with ...
The covered strangle combines two option strategies: a Covered Call and a Cash-Secured Put. Using IWM as an example, you already own or buy 100 shares of the ETF, sell one call short and sell one put ...
YieldMax ETFs like YieldMax Magnificent 7 Fund of Option Income ETFs offer attractive income but only capture about 80% of upside and downside, so investors must understand the trade-offs. Covered ...
WisdomTree PutWrite Strategy Fund ETF is an options-based income play similar to covered call funds. The fund's distribution history has been sporadic and unpredictable, making it difficult to ...
In the financial world, options come in one of two flavors: calls and puts. The way that calls and puts function is actually fairly simple. Call options grant buyers the right, not obligation, to ...
Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s what ...