While directional trading involves making bets on the price movements of an underlying asset, non-directional trading is a unique approach that focuses on generating profits from volatility and time ...

Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility. Options straddles and ...

While many are familiar with buying stocks in hopes of profiting, the strategies for benefiting from price declines are often less understood. Two powerful tools in the bearish (pessimistic) ...

A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...

After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...

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 ...

The stock market is registering one record high after another, unconcernedly shrugging off the various economic crises, geopolitical volatility, trade wars, debt mountains and expensive valuations ...

An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their outlook on a specific asset was bearish.