Options

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

How Interest Rate Movements Affect Options Prices

Interest rates have an important effect on options prices, especially when rates are high. The options greek rho measures the impact of rates and can help when evaluating options.

Understanding Dividend Risk: Basics and Examples

When holding a short call option on a dividend-paying stock, traders should understand how dividend risk can affect options pricing, early assignment, and strategy outcomes.

Weekly Trader's Outlook

Stocks had a volatile week, but are on track for weekly gains, as investors overlook a flare-up in the Iran conflict in favor of Q2 earnings optimism.

Covered Call Strategy Considerations

Selling covered calls is a strategy that can help traders potentially make money if the underlying stock price holds steady. Here are some considerations and specifics to remember.

Large Bid/Ask Options Spreads in Volatile Markets

Bid/ask options spreads widen during volatile markets as market makers adapt how they manage trades amid increased uncertainty.

Weekly Options: Uses, Risks, and Trade-offs

Learn how weekly stock options can potentially help option traders adjust their exposure during market events like earnings releases or economic announcements.

Theta Decay in Options Trading: 3 Strategies

Explore the concept of theta in options and discover three trading strategies focused on time decay, also referred to as theta decay.

What Are 0DTE Options? Learn the Basics

0DTE options have grown in popularity. Learn how they work, why higher trading volume may lead to tighter spreads, and why volatility risk matters.

Trading the VIX: Strategies for the Fear Index

Some traders use products tied to the VIX to hedge their portfolios against market declines or speculate on shifts in volatility. But trading the VIX carries significant risk.

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.