17 docs tagged with "risk management"

Explore advanced spread configurations like ratio spreads and backspreads to create unique risk/reward profiles.

An essential guide to the mechanics of option exercise and assignment, and the strategic considerations for both option buyers and sellers.

A step-by-step walkthrough of a real-world vertical spread trade, from initial analysis to final profit.

A detailed comparison of debit and credit spreads, exploring their unique characteristics, risk profiles, and the ideal market conditions for each.

Learn the essential skills of trade management, including when to take profits, how to cut losses, and when to adjust a spread position.

A practical, step-by-step guide to making your first options trade, from forming a market assumption to managing the position.

A deep dive into the art and science of selecting the right strike prices for your vertical spreads to balance risk, reward, and probability.

Learn the essential technique of rolling options positions to manage risk, take profits, and extend the duration of your trades.

Learn to trade the bear call spread, a credit spread strategy that profits from a falling or sideways market with a high probability of success.

Learn how to construct a bear put spread, a powerful, cost-effective strategy for expressing a moderately bearish view with limited risk.

Learn how to construct a bull call spread, a powerful, cost-effective strategy for expressing a moderately bullish view with limited risk.

Discover the bull put spread, a credit spread strategy that profits from a rising or sideways market with a high probability of success.

Learn how to use the collar strategy to protect a stock position for little to no cost by combining a protective put and a covered call.

Understand how implied volatility (IV) affects your spread positions and learn to use it to your strategic advantage.

Learn how to use protective puts to hedge your stock positions and protect your portfolio from a market downturn.

Learn how to analyze the risk-to-reward ratio of your spread trades to make smarter, more consistent trading decisions.

Learn to avoid the common pitfalls that trap new options traders, from ignoring implied volatility to trading without a plan.