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In-depth answers on your most common options trading and technology questions.

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Which platform is the best and safest for trading options?

My broker’s website appeared online but orders weren’t being accepted. I tried and tried again until I really needed to exit the trade. The loss was growing quickly and I risked assignment on a big position.

The majority of the big online brokers are fairly safe. I use TDAmeritrade.

However, don’t think all the discount brokers are made equal. I have to share my story as a word of caution.

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

If I trade with 10k, how much can I earn per month?

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

What is the role of Greeks in options trading, is it really helpful?

The Options Greeks are very helpful, they are essential to evaluate and understand the behavior and potential future behavior of the option contract or spread. We also see it as the most added parameters to the Brutus Options Ranker.

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

What is the strategy in which you buy in-the-money LEAPS and keep selling short-term out-of-the-money calls?

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

When do you exit or close out a credit spread position?

When trading options, you can exit a position through the execution of an opposing contract of the same type, series, and expiration. Such a transaction must take place prior to the expiration or exercise of the contract.

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

Why does implied volatility vary with option strike price?

In this specific example, a call implied volatility (IV) goes up as the strike price goes down, but sometimes the IV is higher at both extremes, deep in the money and deep out of the money. As you know, you are describing the volatility smile, the extremes in price IV for options that are deep in-the-money. You know from any graphical representation of the smile that as the strike prices move at a rate of change or Delta from its spot (current) price, the skewness of the tails sharply rise. This appears to correlate with the way options are priced, accounting for both intrinsic value and time value.

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

What should everyone know about Options Trading?

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

Does Options trading drive the price movement of the underlying or vice versa?

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

What is ‘Short’ and ‘CE’ in options trading?

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OptionAutomator You Ask, We Answer
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You Ask, We Answer
You Ask, We Answer

What is your favorite options trading strategy and why?

There are many types of options trading strategies that can help you fulfill your trading strategy. Depending on your investment criteria, desired outcome, and market outlook, you can trade calls and puts in different ways to earn income or protect a portfolio position from loss.

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