Trading options

Learn about the world of options and how they might be used to help implement your strategy.

Options can be powerful investing instruments to help generate income, manage risk, and trade volatility. Beginner strategies, such as buying and selling options, demonstrate how these investments can help provide dynamic alternatives to traditional ones. More advanced strategies offer unique and tactical ways to capitalize on trends in the market. Explore below to find an options trading strategy or tool that aligns with your market outlook, no matter your experience level.

The basics

5-step guide to options research
Here are a few tips and resources to help you find options candidates and strategies.
5 tools to research stocks
Here’s how you can analyze investment opportunities using powerful tools and resources.
Introduction to options
Watch this video to learn about the basic characteristics of options and the reason for using different options strategies.

Buying and selling options

Buying calls
Call options grant you the right to control stock at a fraction of the full price.
Selling options
You can potentially earn upfront income by selling options—but there are significant risks.
LEAPS and bounds
An options strategy for short-term traders and longer-term investors.
Weekly options
Trade tactically and efficiently with options that expire weekly—instead of monthly.

Picking the options contract

Picking the right expiration date
A delicate balance between time and cost is at the heart of this critical choice.
Hitting the right strike price
Here are a few ways to help pick the optimal strike price when buying or selling options.
Trading options on
The option ticket on allows you to easily find, analyze, and enter the strategy you want to trade.

Valuation tools

Profit and loss calculator video
Model options strategies to see profit and loss potential, and change assumptions such as underlying price, volatility, or days to expiration.
Strategy ideas
Watch this video on the Strategy Ideas tool in Active Trader Pro®, which is designed to provide you with income generation opportunities.
Argus option reports
Watch this video on Argus reports on, which provide you with real-time data on specific option trading ideas.

Evaluating options

Get to know the Greeks
Use these tools to enhance your options trading proficiency.
Options trading mistakes to avoid
Learn how you may be able to avoid making these options trading mistakes to make more informed decisions.

Generating income

How to sell covered calls
This relatively simple options strategy can potentially generate income on stocks you own.
The leveraged covered call option
Generate the same profit potential as a covered call, without owning the underlying stock.
Why use a covered call?
The covered call strategy involves selling a call option contract while at the same time owning an equivalent number of shares of the underlying stock.

Bearish strategies

The bear call spread
This options strategy can be used to potentially profit in a down market.
The bear put spread
How you may potentially profit from a falling stock price, while potentially limiting risk.

Neutral strategies

Trade like a butterfly
Read about this limited-risk option strategy that can help you manage volatility.

Volatility strategies

Straddling the market for opportunities
Here's an options strategy designed to potentially profit when you expect a big move.
Take advantage of volatility with options
The long strangle is a strategy designed to potentially profit when you expect a big move.


Navigating & customizing the option chain
Watch this video to learn how to use the features of the option chain to easily filter and customize data to find both single options and complex strategies.
Monitor and manage your options portfolio
Watch this video to learn more about how to use the Option Summary in Active Trader Pro® to manage and modify your options positions.
Option tools
Search our industry-leading tools and analysis to help you find, analyze, and implement successful options trades.

Volatility strategies

The calendar spread
Here's how to capture opportunities created by volatility with the calendar spread.
Trade like a butterfly
Read about this limited-risk option strategy that can help you manage volatility.
Adjust your options
How to manage high and low volatility using ratio spreads, an advanced options strategy.
The iron condor
When volatility is low, consider taking advantage of this advanced options strategy.

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