LEAPS or Long-Term Equity Anticipation Securities is an options contracts with expiration dates longer than one year. The premiums for LEAPs are higher than common options of the same stock because the long expiration date gives the stock more time to make substantial move. Since LEAPS has longer expiration date, it is not as volatile [...]

Butterfly option strategy is a neutral strategy. It is used when you think that the stock price will not move a lot, or trade in narrow range. The butterfly spread is a combination of a bull spread and a bear spread. The bull spread strategy is implemented by selling an in-the-money (ITM) put option and [...]

Straddle option strategy is a non-directional strategy. This means that you can make money without knowing where the market will move. It doesn’t matter if it moves up or down, you can make money if it moves either way. The position is created by purchasing the same number of call and put options with the [...]

Income generating option strategies is an option strategies that makes money when you enter the position. The income is generated when you sell option, either selling put option or buying put option. Here are some strategies to consider: Selling naked puts. You will get income by selling put. This is a perfect strategy if you [...]

The bear call spread strategy is used when we thinks that the price of underlying asset will go down moderately in near term. If you think the price will go down a lot, I suggest don’t use this strategy. There are better strategy for that condition. It is implemented by selling an in-the-money (ITM) call [...]

Most option strategies are are centered around making the right call on the direction of a stock. This approach relies on the accuracy of guessing the direction of the stock. Thus the chances of profiting are low. By using a combination of Bull and Bear Credit Spread, an Iron Condor position can be created. It [...]