10 Options Trading Mistakes and Strategies to Avoid
When trading options, it’s possible to profit if stocks go up, down or sideways. You can use options strategies to cut losses, protect gains and control large chunks of stock with a relatively small cash outlay. Sounds great, right? Here’s the catch: You can lose more money than you invested in a relatively short period […]
Options Trading Explained: A Beginner’s Guide
If you’re looking to go beyond stocks, mutual funds or bonds in your portfolio, options could be a good fit. Options give you, well, options for diversification. And while the risks can be high, so can the rewards. You may have heard that getting started with options trading is difficult, or it’s only for the most […]
What’s the Difference Between Options and Stocks?
Building a portfolio can be like dining out. You have lots of choices (chicken or beef? French fries or side salad?), but not all of them suit your appetite. Stocks may be your go-to pick, but options can also be a wise choice for your portfolio. Whether you’re deciding between options vs. stocks or leaning […]
What Are Dividends and How Do They Work?
Whether you’re an active trader who dives into the deep end of the market or a passive investor who rides out waves of volatility, dividends are one way your investments can make a splash in your portfolio. Whether or not stock prices ebb and flow with market changes, dividends are another way to generate a […]
The Basics of Writing Covered Calls
Are you looking to elevate your investment strategy? Writing covered calls could be a way to add investment income to your portfolio, while holding on to your long stock positions. You don’t have to be an investment professional to take advantage of this options move — but it won’t hurt to learn the ins and […]
Key Options Terms: Learn How Theta Is Calculated
Options trading may already be part of your investing strategy if you’re a DIY investor. But whether you’ve been doing it for a while or are just getting started, it’s helpful to become proficient in the options concepts and lingo to be as successful as possible. Specifically, it helps to be well versed in the […]
Confused by Put Options? Answers to Your Most Common Questions
You’ve probably heard the phrases, “What goes up, must come down” and “All good things must come to an end” when someone talks about the end of a bull run in the stock market. Both of those statements infer that your investments can only grow in value when the market is rising. But what if […]
The Basics of Call Options (and How They Can Be Used as Part of Your Investment Strategy)
The emerald-cut rock you slipped on your partner’s finger while down on bended knee was a symbol of your intent to marry. But in some instances — for one reason or another — that diamond might not turn into an “I do.” You can think of a call option as the engagement ring of the […]
How Covered Calls Can Fit into Your Investment Strategy
Ok, so you may not be a professional day trader. But you are the type of investor who prefers trading individual stocks, options, and other securities on your own. So you’re always on the lookout for different approaches to implement within your own investment strategy. One option trading strategy that has gained momentum among DIY […]
Option Trading Terminology & Definitions
The technical jargon associated with option trading can often make it seem intimidating. That’s why we decided to create this option trading terminology cheat sheet to help you keep track of it all. Here are some of the more common terms you’ll hear in a room full of option traders. A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R […]
