While directional trading involves making bets on the price movements of an underlying asset, non-directional trading is a unique approach that focuses on generating profits from volatility and time ...

Anheuser-Busch stock shows higher implied volatility than normal. Options traders can take advantage via a short strangle.

One of the fastest ways new options traders lose money has nothing to do with the market. It’s strategy confusion. Most ...

A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...

Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility. Options straddles and ...

A snapshot of the top strategies to make money from a highly volatile market Heading into the new year, traders expecting more volatile markets may want to refresh their approach. Discover the top ...

After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...

An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their outlook on a specific asset was bearish.

Option trading can deliver tremendous profits, but the flip side of those gains is the potential for tremendous losses, since option trading is a zero-sum game. Those who are just getting started with ...