Today, we will look at a completely risk-free options collar trade. Risk-free collars are not synonymous with zero-cost collars. The zero-cost collar just means that you can add an options collar around a stock for zero additional cost. Those are common, but they are not risk-free. The options collar we are discussing is less common, … Read more
As shown, the iron condor, butterfly, and calendar are all delta-neutral option income strategies, which are so-called “non-directional.” But are they really non-directional? Their current profit and loss line (also known as the T+0 line) has the concaved downward curve typical of such strategies. The current price dot of the underlying is at the top … Read more
Rolling an options position for credit involves closing an existing position and opening a new one to collect additional premium. This technique is primarily applied to short premium strategies such as the short put, selling credit spreads, iron condors, and butterflies. The closing of the old and the opening of the new position can sometimes … Read more
Trading Options is a losing game. You will not get rich off trading options period. When I say options is a losing game I’m speaking from several angles and a decade of experience. I’m not some bitter loser trader (I’ve been a market-beating trader since 2012). This article is written from my experience, as I … Read more
By Terry Ashton, updated January 24, 2025 Business loans around the world are expected to drastically rise to $12.17 trillion in 2025 from $11.29 trillion in 2024, with a 7.8% compound annual growth rate. With the expansion of small and medium enterprises (SMEs) loans, business financing solutions are rising, particularly in the Asia-Pacific region where … Read more
It’s always been general wisdom that buying options is a losing game, equivalent to playing the lottery. You will likely consistently make money as an options trader, selling options rather than buying. The logic goes, if the buyers are losing the money, the seller must make all the money, right? Despite the higher opportunities to … Read more
Options are generally unadvisable due to the large volume of losses retail traders experience. However, despite the warnings and losses, many traders still trade options. Hence, what matters the most isn’t discouraging people from trading options but helping people deeply understand its fundamentals. This way, retail traders can optimally minimize their losses, and perhaps increase … Read more
Options enable investors to trade contracts worth 100 shares of stock that expire by a given time. Investors then leverage these contracts by betting on where they think the stock price will be by a given date. New investors turn to options due to their “cheapness” compared to buying underlying shares of stock. If investors … Read more
By Terry Ashton, updated December 10, 2024 How BProTrade Supports Smarter Portfolio Diversification In the cutthroat trading environment of today, diversification is not a strategy but a compulsion. To provide traders with wider access to varied markets, BProTrade added more instruments to its offering plate, wherein ample opportunities exist for the users to manage risks … Read more