Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Options strategies can seem complicated, but that's because they offer you a great deal of flexibility in tailoring your potential returns and risks to your specific needs. One interesting strategy ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

Options trading might sound complex, but there are basic strategies that most investors can use to improve returns, bet on the market's movement, or hedge existing positions. Covered calls, collars, ...

A short straddle is a two-legged spread that offers an initial upfront credit, but carries the risk of potentially heavy (in fact, technically unlimited) losses. The strategy is intended to profit ...

The straddle options strategy is employed by traders expecting a significant move from an equity, but who are unsure of the direction of this move. Additionally, since the strategy relies heavily on ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

The S&P 500 Index has been very quiet in recent weeks. In fact, the broad-market benchmark hasn't made a 1% daily move in either direction since July 8, the longest streak of its kind since May 2014.

Options sold as “volatility plays” hide a structural flaw—one retail traders often discover too late, after the market moves, premiums collapse, and the trade that seemed safe quietly turns costly.

Options strategies can seem complicated, but that's because they offer you a great deal of flexibility in tailoring your potential returns and risks to your specific needs. One interesting strategy ...