Lessons in Options Trading Strategies - The ’Roll’

Rolling is defined in options as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.

Other times, you may have to buy your short call back so that you will not lose your stock…

Lessons in Options Trading Strategies - The Lean

Professional traders use the term lean to refer to one’s perception about the directional strength of the stock…

The Protective Put Strategy

As a reminder, a put gives an owner the right but not the obligation to sell a certain stock, at a specific price, by a specified date.

For this opportunity, the buyer pays a premium…

Options Trading: The Protective Put Strategy In Different Scenarios

As previously stated, when we buy a stock, three potential outcomes exist. The stock can go up, go down, or remain stagnant. Let’s hypothesize results across these three scenarios…