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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Beginners Guide To Vertical Options Spreads

Vertical options spreads are very powerful trading tools if used correctly. There’s a total of four different vertical spreads and each one has it’s own unique purpose. The four different spreads can be divided into two different categories, debit spreads and credit spreads. It’s very simple to differentiate between the two because of their names. With vertical credit […]

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The Collar Spread Strategy Explained

One of the most popular option strategies is a covered call strategy; it’s very simple to initiate and the only prerequisite is owning the underlying asset. If the underlying asset stays at the same level or moves higher, the options seller will profit from the trade. But in situations where the underlying asset moves lower, the […]

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