Options provide traders the freedom to choose from a litany of strategies for their portfolio. We will look into trading based on institutional flow, trading volatility and trading around earnings or events. We will also examine what happens with options during assignment and exercise.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.