Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

A few months ago, we explored trying to smooth out performance of consistently shorting straddles with a buying dated long straddle using NDX options. We found that a consistent strategy selling NDX 3 ...

The financial markets have experienced strong volume growth in the short- dated index option arena. This paper explores the performance of short-dated index options versus the subsequent price move in ...

The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you trade on ...

The Realty Income (O) options strategy continues to generate consistent premium income through rolling short strangles, thanks to what has been a range-bound share price. Though there are times that O ...

A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...

Staying neutral can be difficult, whether in lunchroom arguments at work, watching a battle between rival sports teams or trading stocks in a volatile market. But one of the advantages of markets is ...

When the stock market becomes a roller coaster, the gains and losses both get larger. Traders have the potential to make profits during volatility, but getting it wrong can result in losses. Some ...