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Volatility Smile in Options: What It Is and How to Read It
A volatility smile shows implied volatility rising for far in- and out-of-the-money strikes. Learn how to read it, how it differs from skew, and how to use it.
Pin Risk in Options: How to Spot It and Manage It Before Expiration
Pin risk is the uncertainty of being assigned when a stock closes near your strike on expiration day. Learn how it works and how to manage it.
Trading Expectancy: Formula, Examples and What Counts as Good
Learn the trading expectancy formula, how to calculate it from your journal in dollars or R, what a good number looks like, and how many trades you need.
Calendar Spread Strategy: How It Works and When to Use It
A calendar spread sells a near-term option and buys a longer-dated one at the same strike. Learn setup, payoff, risks, diagonals and the pre-earnings version.
Kelly Criterion Trading: Formula, Examples and Limits
Learn how the Kelly criterion sizes trades: the formula, a worked options example, why fractional Kelly is safer, and where the math breaks in real markets.
After Hours Options Trading: What You Can Trade and When
Can you trade options after hours? Learn which contracts trade past 4:00 p.m. ET, the new early and late sessions, order limits and the real risks.
Collar Strategy: How It Works, With Examples and Risks
Learn how an options collar works: the put floor, the call ceiling, a worked example with max gain, max loss and breakeven, plus how it compares to a protective put.
The Wheel Strategy: How It Works, a Real Example, and the Risks
The options wheel strategy explained: how selling cash-secured puts and covered calls works, a worked example with numbers, strike choice, and the risks.
Box Spread Options: How They Work, Risks and Real Costs
A box spread combines four options into a fixed payoff that works like a loan. See the math, the arbitrage myth, assignment and tax risks, and who should skip it.