Hybrid Options Structures

Hybrid options structures

Hybrid automobiles utilize both gasoline and electricity to generate power. Hybrid option structures utilize both a vega-negative component and a vega-positive component to generate potential income. We will explain Vega shortly. Today, we will examine several hybrid structures: the Flyagonal, the A14, the Combo Trade, and the Rhino. They are non-directional strategies that attempt to … Read more

Does SPY Have Dividends?

does spy have dividends

Yes, it does. Investors holding the SPY receive a dividend payout once every quarter. A quarter is three months. There are four dividend payments made annually. This is because SPY is the ticker symbol for the ETF (Exchange-Traded Fund) that tracks the S&P 500 index. As an ETF, it is treated very similarly to a … Read more

Option Circle Review

Review article on the Option Circle trading platform

Option Circle is a bot-based trading platform for options traders. This means that you can set up a bot to automatically enter and exit trades based on your criteria. The bots will scan for setups and initiate trades on your connected brokerage account (currently limited to select brokers, including Webull, Tradier, Tastytrade, and TradeStation). Contents … Read more

The QQQ and TQQQ ETF Profit Machine

Book review The QQQ and TQQQ ETF Profit Machine.

Contents In an era where artificial intelligence is reshaping industries and investor sentiment, The QQQ and TQQQ ETF Profit Machine by Leslie N. Masonson arrives with impeccable timing. As AI-focused tech giants dominate market headlines, traders and investors alike are searching for smarter, more tactical ways to participate in this growth, without getting lost in … Read more

Where is the Best Theta in an Options Credit Spread

Best theta setup in an options credit spread strategy

As its name implies, a bull put credit spread generates profits if the underlying stock price increases. This is the directional component of the spread. There is another component, which is the time component. It generates income over time, even if everything else remains the same. There is no guarantee that the underlying price will … Read more

How and Why to Thin an Options Calendar Spread

How to thin an option calendar spread explained

In this example, we will demonstrate how a profitable options calendar spread can be adjusted to extract money from the trade, thereby locking in a profit and making the trade a no-lose proposition. Contents Suppose an investor entered the following at-the-money calendar on SPX: Date: Jan 2, 2025 Price: SPX @  5842.67 Sell to open … Read more

Enabling Risk-free Trades With Options Put-Call Parity

Enabling risk-free trades using put-call parity

Some may think that put-call parity in options is just a theoretical concept with no practical applications, as arbitrage opportunities are unavailable to retail traders. We will show you how it has practical application in constructing risk-free trades. And we are not talking about arbitrage. We had shown previously with the risk-free collar that risk-free … Read more

Complete Guide to the Award-Winning Trading Platform

Moomoo trading and investment platform review

Moomoo has earned recognition as TradingView’s Best Stock Broker for 2024, achieving a 4.7-star rating from over 3,300 users. Founded in Palo Alto, California, in 2018 and now serving 24 million users worldwide, this commission-free platform consolidates professional-grade tools traditionally scattered across multiple platforms. Moomoo launched across all 50 states after securing a U.S. trading … Read more