A long put is similar to a long call except that the trader will buy puts, betting that the underlying stock’s price will decrease. Suppose a trader purchases a one 10-strike put option (representing ...

Overlay Shares implements the strategy through put spreads, pairing each short put with a lower-strike long put to establish a defined-risk options overlay. For some investors, selling puts may offer ...

We’ve talked before about how exchange-traded funds (ETFs) represent an efficient tool for gaining quick access to different types of assets or investment exposures. We’ve also discussed how options ...

This article is the second of six on the topic of using options to swing trade. The topic this week is the most basic of swing trading methods, the use of long options only. Swing traders want to open ...

The thesis for this article is already captured in the title. In the subsequent sections, I will argue why the combination of elevated P/E ratios for the overall equity market and muted level of ...

Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s what ...

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. The beauty of options ...