Put credit spreads are a popular options trading strategy that can be used to generate income from a stock or index that is expected to trade within a certain range. This strategy involves selling a put option and simultaneously buying a put option with a lower strike price, creating a spread....

A call credit spread is a popular options trading strategy that can be used to generate income from a stock or index that is expected to trade within a certain range. This strategy involves selling a call option and simultaneously buying a call option with a higher strike price, creating a...

Iron condors are a popular options trading strategy that can be used to profit from a stock or index that is expected to trade in a range. The strategy involves selling both a call spread and a put spread, with the aim of generating income from the premiums collected while limiting potential...

Put-call parity is a fundamental concept in options trading that describes the relationship between the price of a call option and the price of a put option on the same underlying asset with the same strike price and expiration date. Put-call parity is based on the principle of arbitrage, which...

The Black-Scholes model is a mathematical formula used to estimate the price of a financial instrument, such as a stock option, based on various factors that affect its value. It was developed in 1973 by Fischer Black and Myron Scholes and has since become a widely used tool in finance.

At its...

Selling covered calls is a financial strategy where an investor who owns a stock agrees to sell someone else the right to buy that stock at a certain price (called the strike price) for a set period of time.

Let's start with a non-financial example to help explain the concept. Imagine you have a...

The covered call strategy is a popular options trading strategy that can help investors generate income from their stock holdings. In this strategy, investors sell call options on their underlying stocks while simultaneously holding an equivalent number of shares of the same stock. The goal is to...

The put-call ratio is a popular market sentiment indicator used by traders to gauge the overall sentiment of the market. It compares the number of traded put options to the number of traded call options on a particular underlying asset. Put options give the holder the right to sell the underlying...

Selling options can be a profitable strategy for investors who are looking to generate income from their investment portfolios. While many investors focus on selling out-of-the-money (OTM) options to maximize their potential profit, selling in-the-money (ITM) options can also be a lucrative...

Are you looking for a way to acquire stocks at a discounted price while generating income in the process? If so, then you may want to consider using a cash-secured put strategy.

A cash-secured put is a type of options trading strategy where you sell a put option on a stock or other underlying...

**What is a Call Option?**

Before we dive into the topic of selling call options, let's first define what a call option is. A call option is a financial contract that gives the buyer the right, but not the obligation, to buy a stock or other underlying asset at a predetermined price, known as the...

If you're an investor looking for a way to generate income and potentially buy stocks at a discount, cash secured puts are worth considering. In this article, we'll take a closer look at how this options trading strategy works, the risks and benefits, and potential scenarios for its use in...