The choice between writing vs buying options depends on a trader’s market view and risk tolerance. Here’s our guide. Stock options are financial instruments that give the holder the right, but not the obligation, to buy or sell a specific stock at a predetermined price within a certain time frame. There are two main ways […]
Writing vs Buying Options | Is Selling Or Purchasing Stock Options Better?
Further Reading On Options Trading...
Options Trading Strategy: Bull Call Spread
The Bull Call Spread: A Bullish Options Strategy Introduction The bull call spread is a simple strategy that can be used by novice options traders to bet on higher prices ...
Calendar Spread
The Calendar Spreads Options Strategy What is a Calendar Spread? Intro Calendar Spreads are one of the key non-directional strategies used by options traders to make money in any market ...
Options Trading Strategy: Long Put
What Is A Long Put? A long put option strategy is the purchase of a put option in the expectation of the underlying stock falling. It is delta negative and ...
Options Spreads: Put & Call Combination Strategies
Options Combinations Explained Options spreads involve the purchase or sale of two or more options covering the same underlying stock or security (ref). These options can be puts or calls ...
Options Trading Strategy: Bear Put Spread
Introduction Options can be an extremely useful tool for short-term traders as well as long-term investors. Options can provide investors with a vehicle to bet on market direction or volatility, ...
Options Trading Strategies: Call And Put Backspreads
Backspreads: Extreme Bullish Or Bearish Options Trading Strategies What Are Backspreads? A backspread is very bullish or very bearish strategy used to trade direction; ie a trader is betting that ...
How Options Work: Trading Put And Call Options
Learning how options work is a key skill for any trader or investor wanting to add this to their arsenal of trading weapons. It’s really not possible to trade options ...
Options Theta Explained: Price Sensitivity To Time
Options theta measures option price sensitivity to time. Time Decay & Options Theta All things being equal options lose value over time - so called 'time decay' - and theta ...
Straddle Spread: Learn This Options Trading Strategy
Options Trading Strategy: Straddle Spread Introduction The straddle spread is a relatively simple options strategy that can be used under different market scenarios. However its most normal use is a ...
Strangle Spread: A Guide To This Options Trading Strategy
The Strangle Spread Options Trading Strategy Introduction Options, and combination trades such as the strangle spread, can be a very useful tool for both novice and seasoned traders and investors ...
Vertical Spread Options Strategy: Definition And Examples
What Is A Vertical Spread?: Definition A vertical options spread is a combination of bought or sold options of the same underlying security and expiry date (but different strike prices) ...
Put Call Parity
Put Call Parity Introduction Options trading can be relatively simple and can also become highly technical. One of the most important basic concepts when it comes to trading options is ...
Options Trading Education
Options trading is a potential lucrative sideline for those willing to put in the effort. Epsilon Options is here to help you learn the skills you’ll need to become a ...
LEAP Options Explained: What Are They And How Do They Work?
Investors that are looking to make longer-term bets may use LEAP Options. Description of LEAP Options A LEAP option is essentially an option with longer terms than standard options. The ...
Sell to Open vs Sell to Close
What is Sell to Open vs Sell to Close? We look at these two similar, but not exactly the same, concepts. There are two ways to participate in the options ...