How To Decide Between The Bull Call Spread And Bull Put Spread?

One of the most interesting and challenging parts of options spreads, is the ability to put together positions that utilize completely different options to achieve the same or similar objective. One excellent example is the vertical bull call spread, which is a debit spread, and the vertical bull put spread, which is a credit spread; both spreads profit […]

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Should You Trade SPY ETF Or SPX Broad Based Index Options?

One of my favorite options trading strategies is collecting premium on the U.S. stock market and one of the most frequently asked questions that I get from my readers is whether I prefer to trade SPY Options or SPX options? Unfortunately, there’s no simple answer to this question and instead of giving you my biased […]

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High Probability Covered Call Writing

Selling Covered Calls is a very simple approach to trading options for both beginners as well as professional traders. The risk to the downside is mitigated by the sale of the call option and upside risk is eliminated altogether, because the seller is long the underlying asset. In this tutorial I’m going to show you […]

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How To Track Volatility With VIX Index

The VIX is calculated using a rather complex formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls. Fortunately, the calculation is performed by the CBOE exchange, so the trader doesn’t have to perform complex mathematical calculations to derive volatility levels manually. There are two common misconceptions that many beginners options traders have […]

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