Options 101

Join the Options Trading Club

If you want help getting started with options, here is a creative technique to help you learn the ropes.

10 Things You Need to Know About the VIX

If you trade options, you need a good understanding of volatility and the VIX.

Will the VIX Keep it Up All Summer?

It seems Mr. Market is assuming the VIX will remain elevated this summer, but there's something investors are forgetting.

How Closely Does VXX Track the VIX?

The iPath S&P 500 VIX Short-Term Futures ETN (NYSE: VXX) doesn't track the VIX exactly, but there is a way to anticipate its movements.

Why Options and Stop Losses Don’t Mix

You may think you're being prudent by using stop-loss order or buy-stop orders when trading options, but they're not a good idea.

How Skew Affects the VIX

You need to understand how skew impacts the VIX, because the 'volatility of volatility' can overstate how fast options are actually moving.

Volatility and the VIX – How to Use the VIX

We have elaborated on what the VIX can't do, but how about what it can do? Find out here.

Hedging – Using Covered Calls and Put Options to Hedge a Position

Here are two ways you can hedge your portfolio when the market is falling.

Volatility and the VIX – Is the VIX Indicating a Future Market Sell-off?

Many are interpreting the recent VIX explosion to mean the market is in serious trouble. Learn more.

Risk Management for Option Traders

Wrong! Just because you are making money now, does not mean you are going to succeed. Learn more.

Is it Time We Banned the VIX?

Have I gone mad? No. Hear me out and I'll tell you what's wrong with the VIX.

Stock Replacement – The Case for In-the-Money Options

Many investors consider options to be too speculative, but if you pick the right options, it is not so different from buying stocks.

How Gamma Affects Short-Term Option Positions

Owning a short position in a near-term option comes with high positive time decay, but it also carries an extra risk that is not immediately apparent. Find out what it is.

Understanding Margin Requirements for Selling Naked Puts

If you plan to sell put options, you need to understand the margin requirements and what broker approval levels are necessary.

NFLX Volatility – Is Netflix’s Unusual Volatility Cause for Concern?

Netflix (NFLX) is experiencing the rare combination of rising stock price and rising volatility that we've seen before in momentum stocks that crashed and burned.

Expiration Day and Gamma – What You Need to Know

There are notions out there that volatility explodes when options expire. It doesn't, per se. What expiration does do though is magnify the trend in progress thanks to gamma.

Options Expiration – How to Avoid the Wrath of Gamma at Expiration

When selling options, it can be very tempting to hold onto short positions until expiration. Find out what risks this poses.

5 Rules of Engagement for Trading Earnings

It's profit hunting time! Here's what you need to know to make big bucks this earnings season.

The Advantages of Options Trading

If you think (or have been told by your broker) that options are dangerous, you've got things all wrong.