Blog: SteadyOptions

When I first started trading, online brokers were just starting to emerge, and my choices were limited. I remember spending hours watching CNBC, trying to absorb as much information as possible. I...

Options provide investors with the ability to proactively hedge their portfolios against potential market crashes. In this article, we will discuss the importance of being proactively hedged in an options portfolio. Why to Hedge? One of the most critical reasons why it is important to be...

First, online banking allows for split-second transfers from one bank to another bank or financial institution. Second, unlike the Depression, this silent bank run has been gradual and lacks media coverage. Until the last week, the...

A winning ratio is simply a number of winning trades divided by the total number of trades. For example, a trader who won 15 out of 20 trades would have a 75% winning ratio. A 90% winning ratio strategy in options usually refers to Out Of The Money...

This is the list of my favorite Options Trading books:...

It is great for backtesting and perfecting trading strategies. It was made with the vision of allowing regular traders to have access to tools that professional traders demand. SteadyOptions readers can...

SFO (Stocks, Futures, and Options) magazine was a monthly financial magazine focused on trading and investing in stocks, futures, and options markets....

The publication was founded in 2001 by Russell Wassendorf, a notable executive in the futures brokerage industry who ran a large futures broker called Peregrine Financial Group. SFOmag was mostly focused on the technical aspect of trading as opposed to fundamentals. Which made it pretty rare in...

Managing portfolio volatility is a critical aspect of investing, and there are many strategies available to accomplish this goal. The covered call strategy is one of the most popular strategies for managing portfolio volatility. In this blog, we will discuss how to use the finest covered call strategy to manage portfolio...

Managing portfolio volatility is a critical aspect of investing, and there are many strategies available to accomplish this goal. The covered call strategy is one of the most popular strategies for managing portfolio volatility. In this blog, we will discuss how to use the finest covered call strategy to manage portfolio...

This article will delve into what exactly put/call parity is, the exact formula for calculating it, and how becoming familiar with this concept can deepen your understanding of the options market. What is Put/Call Parity?...

After all, at their core, options are just contractual agreements between a buyer and seller to potentially do a transaction on a specific date. And the process that ensures that the transaction, or lack thereof, goes smoothly is called options settlement....

But in this article, we're going to show you why early assignment is a vastly overblown fear, why it's not the end of the world, and what to do if it does occur....

On the surface, index and stock options are very similar. Still, there are some differences that traders should be aware of. Understanding these differences can save you from making some costly mistakes in the future. An ounce of prevention is more valuable than a pound of cure....

Furthermore, combining multiple options and creating a spread enables traders to express a number of views that would be impossible using stocks or futures. But the flexibility and dynamic nature of options bring with them some...

An option's terminal value is entirely reliant on the underlying stock's price on the expiration date, making values far more calculable. But crunching some numbers and coming up with a reasonable value for an option doesn’t mean you know...

This dynamic nature of options allows you to craft a position to fit your exact market view. Perhaps there’s a big Federal Reserve meeting coming up and you expect the market to overreact, but you don’t have a specific view as to which direction. In this case, you can use a market-neutral option spread...

There are two types of settlement: physical and cash. The settlement process in an option contract depends on whether you own an American or European-style option contract. Before we talk about the specific mechanisms of these contracts, we...

They get a bad name because of their short-term nature, but at their core, they're just options with a shorter lifespan. All of the same principles of options apply to them, so if you can get past the stigma associated with them, there are plenty of trading opportunities present. As Euan Sinclair once said...

In this article, we'll discuss these differences and how they affect you, so you can discover how to avoid potentially costly problems....