optionology
Inverse Broken Wing Butterfly w/ Calls
Name: Inverse Broken Wing Butterfly w/ Calls Setup: Sell (short) Strike A call and Buy (long) 2 Strike B calls and Sell (short) Strike D call Bias: Slightly Bullish […]
Inverse Broken Wing Butterfly w/ Puts
Name: Inverse Broken Wing Butterfly w/ Puts Setup: Sell (short) Strike A put and Buy (long) 2 Strike C puts and Sell (short) Strike D put Bias: Extremely Bearish […]
Christmas Tree Butterfly w/ Calls
Name: Christmas Tree Butterfly w/ Calls Setup: Buy (long) Strike A call and Sell (short) 3 Strike C calls and Buy (long) 2 Strike D calls Bias: Slightly Bullish […]
Christmas Tree Butterfly w/ Puts
Name: Christmas Tree Butterfly w/ Puts Setup: Buy (long) 2 Strike A puts and Sell (short) 3 Strike B puts and Buy (long) Strike D put Bias: Slightly Bearish […]
Long Condor Spread w/ Calls
Name: Long Condor Spread w/ Calls Setup: Buy (long) Strike A call and Sell (short) Strike B call and Sell (short) Strike C call and Buy (long) Strike D call Bias: Neutral […]
Long Condor Spread w/ Puts
Name: Long Condor Spread w/ Puts Setup: Buy (long) Strike A put and Sell (short) Strike B put and Sell (short) Strike C put and Buy (long) Strike D put Bias: Neutral […]
Iron Condor
Name: Iron Condor Setup: Buy (long) Strike A put and Sell (short) Strike B put and Sell (short) Strike C call and Buy (long) Strike D call Bias: Neutral […]
(SET) and Index Option Expiration
A lot of investors like to incorporate index options into their strategies because they are more stable and easier to predict. These are usually better for using neutral strategies like iron condors. An index option is simply an option based on one of the major indexes such as: S&P [...]
Top 8 Mistakes People Make Trading Options
1. Buying out of the money options because they are cheap – Out of the money options look tempting to buy because they cost a lot less than in the money options. However a quick look at the deltas of the options will tell you that your probability of them [...]
Using Options to Pick Up Stock
Most people will use options as a means of speculation or a means to hedge. Both of these strategies have their place; however what people tend to not use options for is to pick up stock. Using options to go long on a position is a great way to make [...]
The Greek Cheat Sheet
Strategy Delta Gamma Theta Vega Long Stock + N/A N/A N/A Short Stock - N/A N/A N/A Long Call + + - + Long Put - + - + Short Call - - + - Short Put + - + - Long Straddle N/A + - + Long Strangle + [...]
