The Steady PutWrite service consists of two separate strategies available to subscribers known as Steady PutWrite and ETF BuyWrite. Steady PutWrite sells monthly at the money puts on equity indices targeting total notional exposure of 125% and then invests collateral in bond ETF’s.
Theoretically, anyone can trade options. After all, there are listed options that you can buy for as cheap as $1.00. So what is the right amount of money you need before you can officially dip your toe in the water and give yourself a fair shot at becoming a profitable options trader?
Ask a handful of traders what they deem a “small account” to be and you’ll get probably get a few different answers. For the sake of this article, we classify a small account as having less than $5,000. There’s a number of obstacles you run into trading a small account, like the options in certain underlyings being too expensive for you to trade, as one example.
Options Trading can be very exciting and rewarding. But you should not be trading options before learning at least some basic facts about options. Options are very different from stocks. This article presents 7 basic options trading facts that every options trader should know. Don't start trading of you don't understand them.
LEAPS stands for Long-Term Equity Anticipation Security. Which is just a long-dated option, typically referring to those with expirations more than a year out. There’s no technical difference between LEAPS and shorter-term options other than the expiration date. They’re traded on the same exchanges and have the same rules surrounding margin and whatnot.
IV (Implied Volatility) crush happens when the implied volatility of an option takes a nosedive shortly after the conclusion of a catalyst like an earnings report or corporate action. The uncertainty around a company’s earnings report (or other significant catalyst) drives option prices up in the lead-up to the announcement, and down following the announcement, once the uncertainty is gone.
In a nutshell, a calendar options spread involves buying longer-term options and selling an equal number of shorter-term options on the same underlying stock or index, with identical strike prices. The beauty of this calendar spread strategy is its flexibility: it can be executed using either calls or puts, and the results are virtually the same if you stick to the same strike prices and expiration dates.
There are two main goals of the scanner: show youhidden opportunitiesandsave a lot of timewith automated scanning. Let’s see what the top features are and how NinjaSpread can help your trading life.
I love to tradeSPX diagonals, especially when IV skew is higher than usual and I get a wider range of break evens. I know that time options spread break evens are “theoretical” because they are dependent on the IV skew of the front and back month’s IV that changes all the time.
Options are distinctly different from stocks in that they’re derivatives of another asset. The entire value of an option contract depends on factors outside of itself--it’s all based on the price of its underlying asset. Options are highly mathematical in nature, and in some ways, we can quantify the precise value of an option using a model like Black-Scholes.
Both the Iron Condor and Iron Butterfly are short-volatility option spreads. You'd use them to profit from situations where option prices imply a larger price move than your view of the market. These spreads are how traders profit from stocks that go nowhere.
The options markets significantly changed following the pandemic. People got laid off from their jobs or sent to work from home and got bored, so they started trading options. But brand new retail traders weren't selling SPY call spreads. They were buying weekly options in high-momentum, and they were doing it in numbers enough to alter the order flow of the entire options market.
