Covered strangles are income beasts, but they can tie up serious capital.
Want the same cash flow with a fraction of the cost?
Enter the poor man’s covered strangle—a synthetic twist that’s been a go-to in my arsenal. I’ve navigated its wins and pitfalls, so let’s break it down: what it is, why it...
If you're new to options trading or looking to enhance your stock positions, a covered call is one of the most beginner-friendly strategies to explore.
This approach allows you to generate income, reduce your cost basis, and increase your probability of profit—all while maintaining a bullish outloo...
In the world of options trading, understanding the concept of notional leverage and risk is crucial for making informed decisions and managing your portfolio effectively.
In a recent episode of You've Got Options for Income Navigator, the focus was on Hedged Income Trades (HIT), specifically a tier...
A short strangle can collect premium from both sides of an options market, but it also creates risk on both sides of the underlying price.
You sell an out-of-the-money put.
You sell an out-of-the-money call.
You collect premium from both contracts.
If the underlying stays between the two strik
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LEAP options give traders more time than standard short-dated options, but more time does not make a trade automatically safer.
A LEAP can have an expiration date one year or more into the future.
That longer time horizon can reduce the immediate pressure of time decay.
It can give a bullish or
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Options can give traders exposure to stock movement with less upfront capital than buying 100 shares outright.
That is one reason options are attractive.
You may be able to buy a call option for a fraction of the cost of purchasing 100 shares.
You may be able to buy a put option to protect stoc
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Options are often presented as a faster way to make money in the market.
You see a stock moving.
You buy a call or a put.
You use less capital than buying 100 shares outright.
And if the move goes your way, the option may rise in value quickly.
That is one reason traders are drawn to options.
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