Options Trading
Common options trading mistakes showing ignoring Greeks, wrong position size, and no risk management
Covered calls and cash-secured puts collect option premium as income. How each works, where the risk sits, and why option income is not risk-free or fully passive.
An options profit calculator shows the profit or loss of a call, put, or multi-leg strategy at expiry and before it. How the math works and the MarketXLS Excel template.
The stock repair strategy buys one at-the-money call and sells two higher-strike calls against a losing stock position to lower the breakeven at little or no extra cost.
Conversion arbitrage studies put-call parity mispricings for potential profit, subject to trading costs and execution risks. Learn how conversion and reverse conversion strategies work, with real P&L examples and MarketXLS Excel formulas.
Married put strategy explained with setup, cost analysis, and real MarketXLS formulas. Learn how to protect stock positions using puts, compare with protective puts, and manage risk in Excel.
The stock replacement options strategy means buying a deep in-the-money call (delta close to 1) instead of buying 100 shares.
A synthetic short straddle with puts shorts 100 shares and sells two at-the-money puts. Setup, maximum profit, unlimited risk, breakevens, and an Excel template.
An albatross spread is a four-leg condor with wider strikes. A long albatross profits in a wide range; a short albatross profits from a big move either way.
A put ratio spread buys one higher-strike put and sells two lower-strike puts. Max profit at the lower strike; large downside risk below the breakeven.
A short guts sells an in-the-money call and an in-the-money put with the same expiry. Setup, maximum profit, unlimited risk, breakevens, and when it is used.
The long guts options strategy buys an in-the-money call and an in-the-money put on the same stock and expiration to profit from a large move either way.
Bull put spread strategy showing credit spread for bullish market with payoff diagram
Bull call spread strategy showing buy lower strike call, sell higher strike call with payoff diagram
A married put buys a put on a stock you own. Max loss is capped at stock price minus strike plus the premium; upside stays open, less the put cost.
Short guts sells an in-the-money call and put for a credit and profits if the stock stays in range; long guts buys both and profits from a large move. Break-evens and risks.