Options Trading

How to Trade Chipotle Volatility Ahead of Earnings

Volatility sellers have profited following many past Chipotle earnings, but selling strangles assumes unlimited risk.

How Far Will Apple Fall?

Apple’s chart hints at the best place to buy this pricey stock. See the trade.

10 Materials Stocks Charts to Watch

Is it time to get into materials? Investors can follow these stocks' trendlines to help determine where the companies might break next.

Options Plays If Starbucks Cools Off

Using $57 as a target price and the July 20 expiration, here are some strategies to consider.

A Long Call That Makes Sense

InvenSense is at an attractive buying level -- take advantage of a bullish outlook for INVN by ringing up long calls.

What Happens in Vega…

Vega measures how much an options position will shift with each move in implied volatility, helping traders avoid being blindsided.

What are Options Contracts?

When you purchase options contract, the price quoted will be per share and not per contract. Here's a simple calculation to determine options contract price.

Choosing an Options Broker

Before you open an options trading account here are a few considerations you'll encounter when choosing an options broker. Getting approval for trading options.

Options Trading Strategies

There are many fairly complex options trading strategies. Here's a listing of options trading strategies for novice and seasoned options traders.

Common Mistakes to Avoid When Trading Options

In addition to risk, time decay, and overly aggressive positions, there are a few other common mistakes that option traders make. Avoid these Options Mistakes.

Understanding Options Risk

By understanding options risk, you can become a better and more profitable options trader. While big returns are achievable savvy traders understand the risk.

How to Read Options Quotes

How to read options quotes and make sense of open interest, volume and expiration cycles.

How to Price Options

The price of an option is influenced by the stock price, time left until the option expires, and the volatility of the stock. Learn how to price options.

How to Read Options Symbols

All options symbols are 21 characters long. While this seems like it would make the symbology difficult to understand, the uniform options symbol format is easy to understand.

Options Pricing

Strike price is an important part of the options contract and the only static variable that contributes to option’s pricing. Learn which factors impact the price of options.

Rolling Up a Bearish Bet on Bonds

Option traders sitting with a loss on their bear call spread can try shifting the trade to higher strikes.

Play the Selling Sequel with Call Spreads

Traders expecting continued broad-market lethargy could consider a limited risk, limited reward options spread strategy.

Weekly Option Plays Ahead of JPMorgan Earnings

Option traders can consider a short-term strategy before JPMorgan announces earnings tomorrow morning.

Trading El Paso’s Uptrend With Covered Calls

El Paso is fundamentally and technically strong, making it a could candidate for a short-term covered call.