What is Scalping? | Trading Concept Guide If you’ve been listening to traders talk on the news, podcasts, or educational videos, you may have heard them use the term “scalping.” So, what is scalping?Scalping ExplainedScalping refers to an activity where traders try to buy or sell securities (stocks, options, or futures contracts) for short-term gains. […]
Top 3 Options Trading Strategies for Beginners
Top 3 Options Trading Strategies for Beginners With so many options trading strategies available, where might beginners want to start? In this post, we’ll cover our picks for the top 3 options trading strategies for beginners.Strategy #1: Selling Put SpreadsOur first options strategy for beginners is selling put spreads (short put spreads), as the strategy has […]
Iron Condor Management Results from 71,417 Trades (STUDY)
Iron Condor Management Results from 71,417 Trades Selling iron condors is an extremely popular options strategy among income traders. In this guide, you’re going to see historical profitability results for the short iron condor strategy on the S&P 500 ETF. Watch the video below for the key takeaways, or continue reading for all of the results. […]
Selling Straddles | Profit & Loss Frequencies [STUDY]
Selling Straddles | Profit & Loss Frequencies [STUDY] Selling straddles (a short straddle) consists of selling a call and put option at the same strike price and in the same expiration cycle. Typically, the at-the-money strike price is used because the short call and short put deltas will offset (at least initially), resulting in a directionally-neutral […]
How to Select Strike Prices for Debit Spreads
How to Select Strike Prices for Debit Spreads One of the difficult parts of learning how to trade options is getting comfortable with strike price selection for various strategies. At first, the amount of strike prices available can be overwhelming, but in time the process of selecting strike prices becomes natural.In today’s guide, we’ll discuss our […]
Is Historical Volatility Useful to Options Traders?
Is Historical Volatility Useful to Options Traders? Most options traders tend to focus solely on implied volatility, which makes sense, as implied volatility is a forward-looking indicator based on the prices of a stock’s options. By analyzing implied volatility, options traders can determine the market’s expected price range for a stock in the future, as […]