Impact of Volatility
Discover how volatility affects options and how traders can interpret volatility to adjust their trading strategies.
Archives: Learning Center
Buying vs. Selling Premium
Sam reviews the difference between buying and selling premium, the pros and cons of each, and examples of both.
Why Options Change in Price + Intro to the Greeks
Multiple factors affect the price of an options contract. As options traders, we are mostly interested in three factors that change the value of an option.
Long and Short Positions
In this section, Sam reviews the types of options contracts and what “going long and short” means for traders.
Special Cases: Implications of Dividends, Mergers, and Acquisitions on Options
There are special cases and implications that are important to understand when it comes to dividends, mergers, and acquisitions in trading options.
Early Exercise and Assignment
Allison breaks down the difference between assignment and exercising your options, her quick start guide to options expiration, and what to do upon assignment.
Assignment: Rights and Obligations in Options
There are different rights and obligations a trader has when trading options. Allison explains what these responsibilities are and what options “assignment” means.
Risk in Options vs. Stocks
There are key differences in risk when trading options versus stocks. Allison breaks down the risks in trading options including expiration, leverage, and strategies.
The 25% Rule
Discover Allison’s risk management strategy for consistent gains. This can help traders avoid investing too much capital and wiping out an account.