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 securities provide dynamic alternatives to traditional investments. More advanced strategies offer unique and tactical ways to capitalize on trends in the market. This series of Viewpoints can help you find an options trading strategy that aligns with your market outlook, no matter your experience level.
|Five tools to research stocks
Here’s how you can analyze investment opportunities using powerful tools and resources.
Call options grant you the right to control stock at a fraction of the full price.
You can potentially earn upfront income by selling options—but there are significant risks.
Picking the options contract
|How to pick 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 pick the optimal strike price when buying or selling options.
|LEAPS and bounds
An options strategy for short-term traders and longer-term investors.
|Get to know the Greeks
Use these tools to enhance your options trading proficiency.
|The power of delta
Learn how this Greek can help you assess the probability of making a profit.
|An IV for your options strategy
If you trade options, implied volatility can help you identify stocks that could move.
|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.
|An income option: the covered call
This strategy can help you potentially generate income on stocks you own.
|The bull put spread
Capture profits from a rising stock while putting a limit on potential losses.
|The bull call spread
A strategy designed to take advantage of price gains while potentially limiting risk.
|The bear call spread
This options strategy can be used to profit in a down market.
|The bear put spread
How you may profit from a falling stock price, while potentially limiting risk.
Take advantage of volatility with options
The long strangle is a strategy designed to profit when you expect a big move.
|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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