Options Strategies
Advanced options spreads, LEAPS, and multi-leg strategies
22 articles in this category
Butterfly Spread: Low-Cost Options Strategy for Range-Bound Markets
The butterfly spread offers a low-cost way to profit from range-bound markets. Learn the mechanics, variations, and when this defined-risk strategy shines.
LEAPS Options: Long-Term Options for Patient Traders
LEAPS are long-term options contracts that expire a year or more out. Learn how to use them for stock replacement and long-term directional bets.
Credit Spreads: Collecting Premium with Defined Risk
Credit spreads let you collect premium upfront with defined risk. Learn bull put spreads and bear call spreads for consistent income generation.
Debit Spreads: Directional Bets with Limited Risk
Debit spreads let you make directional bets with a defined maximum loss. Learn when to use call and put debit spreads and how to select strikes.
The Wheel Strategy: Selling Puts & Covered Calls for Income
The Wheel strategy combines selling puts and covered calls in a repeatable cycle for income. Learn the mechanics, stock selection, and risk management.
Calendar Spreads: Profiting from Time Decay Differences
Calendar spreads profit from the faster time decay of short-term options versus long-term ones. Learn this versatile strategy for range-bound markets.
Diagonal Spreads: Combining Time & Direction
Diagonal spreads combine different strikes and expirations for directional trades with a time decay edge. Learn how to structure and manage them.
How Do Options Work? The Mechanics Behind Every Contract
Options can seem confusing at first. This guide breaks down exactly how options contracts work — premiums, strikes, expiration, and everything in between.
Options vs Stocks: When to Trade Each & Why
Should you trade options or stocks? This comparison breaks down leverage, risk, capital requirements, and when each instrument makes the most sense.
Futures vs Options: Key Differences Every Trader Should Know
Futures and options are both derivatives, but they work very differently. Learn the key distinctions in risk, margin, leverage, and use cases.
Options Trading for Beginners: Start Here
New to options? Start here. This beginner-friendly guide covers everything from terminology and mechanics to your first trade and beginner strategies.
Options Expiration & Quadruple Witching: What Happens & Why It Matters
Options expiration can move markets. Learn what happens when contracts expire, the mechanics of quadruple witching, and how to manage expiration risk.
Selling Options for Income: The Theta Decay Advantage
Selling options puts time decay on your side. Learn the strategies, risk management, and mindset needed to generate consistent income as an option seller.
Best Options Trading Simulators: Practice Without Risk
Practice options trading without risking real money. We compare the best options simulators and paper trading platforms so you can learn by doing.
Best Options Trading Platforms: Features That Matter
Choosing the right options platform matters. We compare commissions, tools, execution quality, and analysis features across the top options brokers.
Bull Put Spread: Bullish Credit Spread for Income Traders
The bull put spread collects premium while defining your risk. Profit when the stock stays above your short strike.
0DTE Options: Same-Day Expiration Trading Explained
0DTE options expire today. Theta is maxed out, gamma is extreme, and moves are fast. Here's how traders use them.
Iron Butterfly: A Tighter Iron Condor for Range-Bound Markets
The iron butterfly is a tighter version of the iron condor. Learn when to use it and how it profits from low movement.
Poor Man's Covered Call: Using LEAPS Instead of Stock
The PMCC uses a LEAP instead of stock to run a covered call at a fraction of the capital. Learn the setup and trade-offs.
Options Risk Management: Position Sizing, Greeks & Adjustments
Options risk management goes beyond stop losses. Learn to size positions, monitor Greeks, and adjust trades before they blow up.
Ratio Spreads & Backspreads: Asymmetric Options Strategies
Ratio spreads and backspreads use unequal numbers of options for asymmetric payoffs. Learn both and when each works best.
Understanding Options Expiration
Options expiration is the date when contracts cease to exist — understanding its mechanics is essential for strategy selection and trade management.