Options

Learn about options trading, from how to place your first options trade to more advanced topics.

Weekly Trader's Outlook

Trade tension heated back up between the U.S. and China this morning, which thwarted what would have been an up week for both the S&P and Nasdaq. Whether today's sell-off is enough to stymie bullish momentum, or embolden dip buying behavior remains to be seen.

An Investor's Guide to Options Income ETFs

Options income ETFs offer investors a unique combination of high yields, downside cushion, and reduced volatility, but they come with risks worth considering.

Using Implied Volatility Percentiles

Learn how implied volatility (IV) percentiles can help identify when to use various options strategies. Rank volatility using IV percentiles to see if changes are normal or unusual.

Short Straddles vs. Strangles Options Strategies

Short straddles and strangles can help traders take advantage of range-bound trading or drops in implied volatility. But advanced options strategies carry greater potential risk.

Money Due: Handling Credit Spread Assignment

Early assignment is a risk of trading credit spreads. What happens when a trader's notified money is due? Learn how to take an economical approach to managing an early assignment.

Practice Options Trading on the thinkorswim Platform

Stock traders may consider options as way to generate income or speculate on the market, but it takes practice to master the complexities. Learn how to get started risk-free.

Using S&P 500 Put Options to Hedge a Downturn

Using S&P 500 put options for temporary downside portfolio protection when concerns over an event-driven sell-off are elevated.

How to Hedge in a Volatile Market

Options hedging strategies allow investors to insure against market risk, although this protection comes at a cost. Find out how to hedge with options.

Comparing Index Options and Equity Options

Index options are typically used to hedge and speculate on broad swaths of the market, while single equity options track much narrower underlying assets. Both can have a place in a trader's toolkit.

Understanding the Gamma Squeeze

A gamma squeeze occurs through a combination of retail call buying, a rally in the stock, and market makers buying stock to hedge exposure, forcing the stock price up.