Want to create synthetic dividends, collect premiums as rent, and compound profits from stocks? Read more about a strategy ...

Discover the best trading strategies that revolve around options. Options trading involves buying and selling contracts that derive value from an underlying asset, like stocks. There are two types ...

Selling premium is a popular trading strategy that involves selling options contracts to other investors. Traders and investors can generate income for their long-term portfolios using strategies ...

This isn't like the usual market order of buying or selling a security, where the investor is obligated to do so. This nuance is part of the strategy around trading options; sometimes, it's in the ...

While all legitimate strategies, they pose significant risk for the uninitiated. The appeal of selling options is that it can look like free money, and that’s the case with the uncovered call ...

Growth of Options Selling Strategies versus the S&P 500 Source: Morningstar Direct. Data as of Dec. 31, 2023. These strategies have their time and place, but yield isn’t the right framework to ...

Buying a straddle options strategy profits from large price swings, regardless of direction. Selling a straddle is profitable when the underlying security's price remains stable. Straddle ...

since some options strategies (such as selling puts and calls) are riskier than others, and you could lose more money than you put into the trade. If you’re doing riskier trades, then the ...