Options
Learn about options trading, from how to place your first options trade to more advanced topics.
The Risks of Options Assignment
Before entering an options trade, traders should consider the possibility of early assignment. Learn more about assignment and how to help reduce the risks associated with it.
Form 1099-B: Cost Basis and Options Trading
Learn what cost basis is, where to find it on Form 1099-B, and what option traders might expect with their Form 1099-B.
Trading Covered Calls & Short Puts
In this webcast, your education coach will discuss how and when some options traders might employ the covered call strategy in their income portfolios. Expect a balanced education on the potential benefits and risks of this strategy, and explore the tools that can help you implement it.
Credit vs. Debit Spreads: Let Volatility Guide You
When deciding between trading credit spreads or debit spreads, it can be helpful to align the options strike prices and expirations with the level and direction of implied volatility.
Calculating Risk on Vertical Options Spreads
When trading vertical options spreads, the maximum risk and profit potential are defined and relatively straightforward to calculate. Here's how to assess the risk parameters.
Options Greeks: Gamma Explained
As stock options get closer to expiration, options prices can change quickly. Understanding options gamma could help traders better manage their stock options positions.
Straddles vs. Strangles Options Strategies
Options straddles and strangles are a way for advanced traders to get exposure to volatility. Learn more about straddle and strangle options strategies.
Bullish & Bearish Vertical Options Spreads
Learn about vertical credit and debit spreads, why they're used, and how option traders can potentially incorporate them in their trades.
Viewing Options Volatility Through Different Lenses
Volatility is a popular options topic among traders. But it can be confusing. Looking at volatility from trading capital, past activity, and probability perspectives can help.
Trading with Broken Wing Butterflies
Learn how to turn a long butterfly spread—typically initiated with a debit—into a credit spread by adjusting one of the wings, aka a "broken wing butterfly."