Options field guide
All guides · Page 21
Plain-language guides to earnings, implied volatility, option strategies, target prices, and time decay
532 guides
Closing vs exercising an option
Learn how selling to close differs from exercising and why remaining time value matters to the decision
Read guideCovered call vs. cash-secured put
Understand covered calls and cash-secured puts, the decision it supports, and the pricing and execution risks to check before acting
Read guideDebit spread vs. credit spread
Understand debit and credit spreads, the decision it supports, and the pricing and execution risks to check before acting
Read guideEx-dividend dates and option assignment risk
Learn why short calls can face higher early-assignment risk before an ex-dividend date
Read guideHow to calculate covered call yield
Calculate premium yield and assigned return while keeping stock downside and assignment in view
Read guideHow to choose an option expiration
Understand option expiration selection, the decision it supports, and the pricing and execution risks to check before acting
Read guideHow to choose an option strike
Understand option strike selection, the decision it supports, and the pricing and execution risks to check before acting
Read guideHow to evaluate rolling an options spread
Compare the closed spread with the replacement's strikes, expiration, debit or credit, and new maximum risk
Read guideHow to read an options chain
Understand an options chain, the decision it supports, and the pricing and execution risks to check before acting
Read guideHow to research options around a company's earnings
Use a repeatable ticker-level checklist for earnings date, option terms, volatility, and position risk
Read guideHow to size an options position using maximum loss
Turn contract-level maximum loss into an account-level position limit without treating the estimate as a promise
Read guideIron condor vs. iron butterfly
Understand iron condors and iron butterflies, the decision it supports, and the pricing and execution risks to check before acting
Read guideIV Rank vs IV Percentile
Compare two historical implied-volatility measures and the different question each one answers
Read guideLEAPS call strategy: what to evaluate
Understand long-dated call exposure, capital outlay, time value, volatility, and expiration risk before using LEAPS
Read guideLEAPS calls vs. owning stock
Understand LEAPS calls and stock ownership, the decision it supports, and the pricing and execution risks to check before acting
Read guideLong call vs bull call spread
Compare uncapped upside, entry cost, break-even, and capped payoff in two bullish option positions
Read guideLong straddle vs long strangle
Compare the cost, break-even distance, and movement required by two long-volatility option strategies
Read guideMarket order vs limit order for options
Compare execution certainty, price control, bid-ask spreads, and fill risk when ordering options
Read guideOption Greeks explained
Understand option Greeks, the decision it supports, and the pricing and execution risks to check before acting
Read guideOption premium explained
Understand option premium, the decision it supports, and the pricing and execution risks to check before acting
Read guideOption strike price explained
Understand an option strike price, the decision it supports, and the pricing and execution risks to check before acting
Read guideOptions liquidity checklist before placing an order
Use bid-ask spread, quoted size, open interest, volume, and contract terms together before sending an options order
Read guidePoor man's covered call: risks and mechanics
Understand a long-dated call plus short call position, including capped upside, rolling, and assignment exposure
Read guideProbability of profit vs. break-even
Understand probability of profit and break-even, the decision it supports, and the pricing and execution risks to check before acting
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