Most investors are familiar with what earnings are, but less know about the different strategies and considerations when investing in a company with upcoming earnings. In this post you will learn about what earnings are, the terminology associated with earnings, and how you can place an 'earnings trade.'
Instead of going through different positions and strategies to figure out which way you need the market to go to make money, delta will give you a snapshot of this information for each position, strategy, and even your overall portfolio. On the simplest level, delta (positive or negative) tells us which way we want the underlying to go to make money.
Strike price is an important options trading concept to understand. This post will teach you about strike prices and help you determine how to choose the best one.
In options trading, the term 'in the money' is used quite often to describe the position of an underlying in relation to the strike price of a stock option. For experienced traders, the term 'in the money' is inherently understood, however for newer traders or investors learning how to trade options, this term can be a bit confusing.
Investors will typically buy call options when they expect that a underlying's price will increase significantly in the near future, but do not have enough money to buy the actual stock.
A call is an option contract that gives the purchaser the right, but not the obligation, to buy stock at a certain price. The price specified is called the strike price. If the stock goes up, the value of the call contract also goes up. If the stock goes down, the value of the call option goes down.
Wrap your mind around vertical credit spreads with Katie and Ryan's four basic keys to understanding and trading them!
In a strategy game such as poker, some players make decisions off of instinct, while others use probabilities and numbers. In the world of trading, this concept is very similar. In this post, we will focus specifically on the probability of making at least $0.01 on a trade.
An iron condor is an options trading strategy that is made up of four options contracts at four different strike prices. An iron condor is typically sold (meaning that you receive a credit for the trade) when you have a neutral market assumption about the underlying.
Choosing an options expiration date can be challenging as a new trader. This post will provide information and tips on choosing an optimal expiration date.
Implied volatility rank (or IV rank for short) is a newer concept in the options trading industry. Any option traders knows what implied volatility is and how it relates to the pricing of options, but few understand what IV rank is. IV rank is a measure that brings relativity to implied volatility.
Extrinsic value and intrinsic value are directly linked to the price of an option. It is important to understand these concepts so you can maximize returns.
The amount of buying power a trade takes up directly impacts your options portfolio. Learn about buying power and what it means to reduce your buying power.
Ryan and Beef explain whether ‘tis nobler in the mind to buy or short options. Check out their segment comparing the two.
Notional value helps us understand how much value a security theoretically controls. To learn how we apply it to leverage and position size, check out this post!
Here are the top reasons you need to get a tastytrade login, like, right now!
Meet tastytrade's newest Rising Star of the options trading scene, John W. In just three years, John has become a full-time trader and has lots of wisdom and knowledge to share. Read his story and watch his segment here!
Here's more information about new programming additions to the tastytrade network for people new to options trading and new to trading futures.
"The Skinny on Options Math" series, featuring Tom Sosnoff, Tony Battista, and Jacob Perlman, makes sense of complex option pricing formulas, including the most famous - The Black-Scholes Model.
Are you a beginner trader having a hard time staying engaged in the process? Here we list some techniques you can use to stay engaged in the market, even when you don't feel like it.
Liz Dierking and Jenny Andrews, hosts of tastytrade’s LIZ & JNY Show, have been best friends since college and have been trading since 1997. They both got their start at the CBOE and are now both currently full-time mothers and traders. Here is a list a few of the techniques they’ve taught me to help me keep up with trading while living a busy, awesome and epic life!