Options

Learn about options trading, from how to place your first options trade to more advanced topics.

Intro to Put Ratio Options Spreads

Discover how traders may use put ratio options spreads to pursue specific financial objectives, as well as the strategy's advantages and risks.

Box Spreads: What They Are and How to Use Them

A box spread options strategy can be a useful cash management tool when executed correctly, potentially helping traders lend or borrow money synthetically via the options market.

Gamma Scalping: A Primer

Gamma scalping—also called delta-neutral trading—is an options strategy designed to help traders navigate pricing volatility.

Using Options Volatility Data to Research Moves

These options sentiment indicators—available on the thinkorswim platform—enable a trader to see the market's expectations for a security's potential move

Unbalanced Butterfly and Strong Directional Bias

A guide to using unbalanced butterflies for traders who have a strong directional bias but want to generate income and ensure they have defined risk.

A Guide to the Covered Strangle Options Strategy

Learn how covered strangles can potentially help traders earn extra income from options and manage their stock positions during periods of sideways trading.

Risks of Options Assignment

Before entering an options trade, traders should consider the possibility of early assignment. Learn more about assignment and how to potentially reduce risks associated with it.

An Investor's Guide to Options Income ETFs

Options income ETFs offer investors a unique combination of high yields, downside cushion, and reduced volatility, but they come with risks worth considering.

Can Protective Puts Provide a Temporary Shield?

Protective puts are one way to hedge stocks against a significant price drop. But investors should consider factors like time decay and volatility before considering this strategy.

Short Straddles vs. Strangles Options Strategies

Short straddles and strangles can help traders take advantage of range-bound trading or drops in implied volatility. But advanced options strategies carry greater potential risk.