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Know Your Options: Archive

David Borun

Selling Puts is not as Risky as it Sounds

In a stock you want to buy, selling naked puts is actually a less risky alternative

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David Borun

Looking for a Glimpse of the Future...In the Past

Another look at using historical data to analyze potential options trades

CBOEPositive Net Change

David Borun

What do Baseball and Options Trading Have in Common

Answer: The stakes are higher in October

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David Borun

Open Interest in Options Influuences Stock Movement

The behavior of market makers often makes an underlying stock move in predictable ways.

CBOEPositive Net Change

David Borun

Rolling Covered Calls Up and Out

Maintaining a covered call position that's been working is as easy as knowing how to "roll" an options trade.

AAPLPositive Net Change

David Borun

Volatilities Sink, How do we "Buy Low"?

We sold calls when implied volatilities were high, now it may be time to close those trades and buy downside protection.

CBOEPositive Net Change

David Borun

VIX Revisited and a Trade for Volatility Spikes

There's a smart way for the average investor to trade implied volatilities

CBOEPositive Net Change

David Borun

What is the VIX Telling Us About the Equity Markets?

The last time the VIX was this high, it was time to buy

CBOEPositive Net Change

David Borun

Spread Trade #8 - The Calendar

Buying or selling a calendar spread is a bet on a divergence between actual and implied volatilities

David Borun

Spread Trade #7 - The Collar

In volatile markets, a low-cost collar can protect a stock position

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David Borun

Spread trade #6 - The Strangle

Just like a Straddle, the Strangle is a bet on movement in the underlying stock and implied volatility

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David Borun

Spread Trade #5 - The Straddle

Trading calls and puts at the same time is a bet on both actual and implied volatility

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David Borun

Spread Trade #3 - Iron Butterflies (and #4 - Iron Condors)

We can generally recreate the butterfly and condor spreads at more favorable entry prices by making them "iron"

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David Borun

Spread Trade #2 -The Condor

Similar to the butterfly, the condor offers a wider range of profit opportunity

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David Borun

Spread Trade #1 - The Butterfly

Episode #1 in a series about common spreads

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David Borun

A Call is a Put and a Put is a Call - Even in Spreads

The principles of call-put parity apply to spread trades as well as individual options

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David Borun

Trading Options on Commodities

It's shaping up to be a wild Summer in commodities. Learn how the options markets work.

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David Borun

Shorting Beyond Meat? Be Careful...

Both selling the shares and buying puts mean paying hidden costs

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David Borun

Unusual Options Activity and Implied Volatilities

After a big trade, sometimes the best strategy is write covered calls

CBOEPositive Net Change

David Borun

Warrants are Options, Too

Understanding options can shed light on the components of corporate deals that include warrants

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David Borun

When to Exercise Your Puts

Avoid leaving interest on the table by knowing when puts should be exercised rather than held.

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David Borun

How Dividends Affect Early Exercise of Calls

Understanding the role of dividends will help you understand when to exercise a call early - and when a short call might be assigned.

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David Borun

Trading Options on Futures

Futures options are not nearly as complicated as they seem

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David Borun

Earnings Trades Revisited

Profits from trading short term options around events is all about hedging

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David Borun

What's the "Right" Level for the VIX?

We saw a few notable spikes in the Volatility index in 2018, but now it's settling back down.

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