OPTIONS TRADING BLOG

How to Trade the Wheel Strategy on SPY The Wheel Strategy is a systematic options trading approach that combines  cash-secured puts and covered calls to generate consistent income while managing risk...

How to Master the Wheel Strategy What you’ll learn: Why The Wheel Strategy Outperforms Stand-Alone Strategies 🡫 Identify Ideal Market Regimes and Stock Characteristics 🡫 Preparation: Platform Setup...

5 Rules I Follow Before Entering a Trade And why you should follow these 5 rules Know why most options sellers blow up their accounts while a select few consistently collect premium month after month?...

How to Choose Strike Prices and Expirations Have you ever stared at an options chain wondering how to choose strike prices and expirations—and why? Too many traders default to what “looks cheap” or an...

Covered Calls vs Credit Spreads Covered calls vs credit spreads; these are two of the most popular option-selling strategies—even more than naked puts—but which should you master first? Many new...

A Beginner’s Guide to Options Trading Ever felt curious about trading options but didn’t know where to begin? Here’s a beginner’s guide to options trading that can help you. Options can seem...

What is options trading (and why it matters) What is options trading? For many new investors, the world of stocks feels out of reach—or downright risky. They don’t realize there’s a powerful tool...

Why Most Options Traders Struggle with Consistent Profits Have you ever wondered why most options traders struggle with inconsistent profits? That frustrating cycle is one of the most common—and...

Most traders obsess over price—chasing rallies, predicting dips, glued to charts. But do you know that time is on your side when selling options? It’s a strategy where you don’t need to be right about...

The Iron Condor is a favorite among experienced options traders for good reason: it can offer steady returns when executed with precision. It’s a defined-risk, non-directional strategy designed to...

If you’ve been selling options for a while—or even if you’re just getting started—you’ve probably heard some version of this advice: “Manage your risk, or the market will do it for you.” That’s not...

If you’ve been trading S&P 500 futures options—aka /ES—for a while, you know it’s a different beast compared to equity or ETF options. Tighter spreads, higher liquidity, and 24-hour market access...

Today, I am discussing what has worked for me in the past. See below for the TT study i have referenced. If you’ve been trading credit spreads on the S&P 500 futures options (like ES or SPX)...

Let’s get real for a second. If you’ve been selling options for a while—or even just thinking about dipping your toes in—it’s easy to feel like there’s a mountain of information out there, and none of...

Options trading can be immensely rewarding, but it’s also notoriously complex. After a decade in the financial markets, I’ve seen countless traders come and go. The difference between...

Options trading offers tremendous opportunities for portfolio enhancement, income generation, and risk management. However, as many traders discover, the path to consistent profitability is riddled...

The call comes when you least expect it. You’re enjoying your morning coffee, scrolling through market news, when your broker notifies you that one of your short options positions has been...

In the complex world of financial markets, options trading stands out as both a powerful tool and a potential minefield. While the allure of leverage and strategic flexibility draws many traders to...

Ever wonder what professional options traders know that you don’t? The secret isn’t just about picking the right trades. It’s about knowing exactly how to handle them when they move...

Selling options in a bear market can be a profitable strategy when stocks are declining. Here’s a comprehensive guide on how to implement these strategies effectively: Understanding Bear Market...

In this video, I walk you through my year-to-date performance on my options portfolio, which is currently up about 18%. I share specific positions I’ve taken and discuss my trading method...

Short option positions – such as selling naked calls or puts – carry significant risks that demand proactive management. Unlike long options, short options have substantial or even unlimited loss...

Covered calls are like the Swiss Army knife of options trading—versatile, practical, and a great way to put your stock portfolio to work. If you’ve ever wanted to squeeze extra income out of stocks...

Ever notice how some trading days feel like a rollercoaster—prices swinging, hearts racing—and others just plod along? That’s volatility, the market’s heartbeat, and Vega’s your ticket to riding its...

Options traders rely on implied volatility (IV) to gauge market expectations for price fluctuations. However, interpreting IV correctly is not always straightforward. Two common metrics—IV Rank and IV...

Ever feel like your options trade’s cruising along, then suddenly it’s a runaway train careening toward chaos? That’s Gamma at work—the speedometer of options trading that kicks in when you least...

Picture yourself standing at the edge of a bustling market, charts flashing, numbers swirling, and you’re tasked with picking the right option to trade—where do you even start? Enter Delta, the unsung...

Imagine a trading strategy where simply waiting becomes your secret weapon, where the ticking clock doesn’t just mark the hours but quietly pads your account with profits. In the world of options...

Selling naked puts can be a highly profitable strategy when done correctly, but it comes with significant risk. If the underlying asset drops significantly, losses can be substantial. One way to...

Summary: The market plummeted this week as economic fears over President Trump’s tariffs continue to grow. Though gold continues to surge, stock indices and crude oil traded low. Meanwhile, U.S...

For traders navigating the options market, the options chain provides valuable insights into market activity. Among the key metrics displayed in an options chain, volume and open interest are often...

Selling options can be a powerful strategy to generate consistent income, but success largely depends on understanding implied volatility (IV). Traders who grasp how IV affects option pricing can make...

Summary: Mixed profits from big companies coupled with President Trump’s reciprocal tarriffs moderate impacted the market this week. While gold continues to surge, stock indices and crude oil traded...

Stocks and commodities continue to trade sideways as the US finally began imposing tariffs on several countries, including China, Mexico, and Canada. Here’s a detailed breakdown of how different...

Long-term Equity Anticipation Securities (LEAPS) options can be powerful tools for traders looking to leverage long-term positions. However, market conditions, profit-taking, or risk management may...

Selling options can be a highly profitable strategy, but your success largely depends on when you enter and when you exit. Identifying the best entry and exit signals can help maximize profits while...

Selling naked puts can be a great way to generate income, but what happens when the underlying stock drops significantly? Without proper risk management, an unexpected downturn can put your capital at...

The Painful Beginning A few years ago, I was just like most traders—eager, ambitious, and convinced that I could outsmart the market. I spent hours researching stocks, trying to find the next big...

This week saw mixed performance across financial markets in the wake of second-time President-elect Trump’s inauguration as investors digested economic data, corporate earnings, and geopolitical...

Trading 0DTE (Zero Days to Expiration) credit spreads in S&P 500 futures options is one of my go-to strategies for capitalizing on short-term market movements while managing risk effectively. In...

I see this question pop up almost daily, so I thought I’d break down the realistic capital requirements for getting started with options selling. Spoiler alert: You’ll need more than your...

Hey everyone! I wanted to share my pre-trade checklist that I use before initiating any option selling trade. Whether you’re just starting or looking to refine your process, having a checklist...

Want to learn about trading S&P 500 E-mini futures contracts? Here’s an ultimate guide on what you need to know about the most traded futures in the world. What are S&P 500 E-mini...

If you’ve been trading options for a while, you might have heard horror stories of early assignments catching traders off guard. But what does it mean for a short option to be assigned before...