An options strangle is a strategy to profit from price swings in either direction of an underlying asset. How does an options strangle work and what are the risks and rewards involved? Benzinga ...
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...
Do you believe a stock is set to move sharply in the next few days, weeks or months? You don’t have to guess the direction if you initiate a strangle or a straddle. These options trading strategies ...
Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...
Picking the right options trading strategy for you will depend on what direction you think a stock’s price will go and your capacity to absorb losses. Buying an option, or “going long,” will have less ...
Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...
Vega neutral offers options traders a way to hedge against changes in implied volatility, reducing risk and enhancing trading strategies for a balanced approach.
A comprehensive guide for trading options on the VIX, a key metric reflecting market volatility expectations for the S&P 500 over the next 30 days. It covers the unique aspects of VIX options, ...
A version of this article was published in the January 2022 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website. Though they can be complex and ...
Learn how to trade weekly options, understand key differences from monthly options, and use smart strategies to boost short-term trading success. Options trading is taking the stock market by storm.