Using a stop loss is a key part of managing risk in any form of trading—including options. Since options can lose value quickly due to time decay and volatility, having a clear exit plan is essential. In this post, we’ll explain how to set stop losses in options trading, and when to use them for…
The options Greeks—Delta, Gamma, Theta, and Vega—are key to understanding how options behave. They help you evaluate price movement, time decay, and volatility impact. Mastering the Greeks lets you plan trades with more precision and control your risk. In this guide, we explain each Greek and show how to apply them to your real-world trading…
Trading options around earnings season or during periods of high implied volatility (IV) requires precision. Chart patterns can help you identify strong setups, avoid false moves, and plan your trades with greater confidence. In this guide, we highlight the best chart patterns to use when options premiums are high and earnings catalysts are near. Why…
In options trading, timing is critical. Reacting to real-time chart patterns can help you catch strong moves before they happen—or exit before things turn against you. Whether you’re swing trading or scalping options, chart patterns combined with options signals can give you an edge. In this post, we’ll cover how to spot chart patterns as…
News events like Fed announcements, economic data releases, or geopolitical headlines can move markets in seconds. Options traders need to understand how to adjust their approach before and after these events to avoid costly mistakes and capitalize on big moves. In this post, we’ll explore how news impacts options pricing and which strategies to consider….
Earnings season can be exciting—and risky—for options traders. During these times, stock prices often swing sharply. But even if the stock doesn’t move much, implied volatility (IV) changes can significantly affect your option’s value. This post explains how earnings season affects options pricing and provides tips to trade smarter during these volatile periods. Why Options…
Implied volatility (IV) is one of the most important factors in options pricing. Yet many traders ignore it when deciding when to enter or exit trades. Mastering IV can help you avoid overpaying for options and improve your timing—whether you’re a buyer or a seller. This post breaks down what implied volatility is, how it…
If you’re looking for long-term exposure in the stock market with lower capital risk, LEAPS options could be a smart addition to your strategy. LEAPS allow traders and investors to control stock positions for months or years—with lower upfront investment than buying shares. In this post, we’ll explain what LEAPS options are, how they work,…
When you expect a big move in a stock, but don’t know the direction—the options straddle strategy can be a powerful tool. This neutral strategy helps traders profit from volatility spikes caused by earnings reports, product launches, or market-moving news. In this post, we’ll explain what a straddle is, how to use it, and when…
If you think a stock or index will stay within a specific range, the iron condor strategy might be your best income play. It’s a popular neutral options strategy used by traders to profit from time decay and reduced volatility. This guide will walk you through what an iron condor is, how to set it…
