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Below are individual articles regarding options trading and how to make money with options. We've added a brief introduction to each article to help you find what you're looking for. We believe you'll find a tremendous amount of useful information and trading insights contained in these articles. Bookmark this page and check back often because we are constantly adding new material.

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Options Articles

Understanding Options Volatility Skew - Volatility is often discussed as a single number. However, in the real world, the volatility of each strike price and in each month is different than the neighboring one. Skew is simply the volatility curve that is formed by plotting the individual volatilities of each option strike. The shape of this curve is often referred to as the volatility “smile” or “smirk.” To read the article, click the following link: Volatlity Skew

A Basic Introduction to Buying Call Options - Buying call options is the most basic of options trading strategies, and the way that most options traders get started. The concept is pretty simple. You find a stock that you believe is going to appreciate in value over the near term. You want to take advantage of this, but instead of just buying the stock, you’d like to use the leverage power of options to create a higher percentage gain on your investment. To read the article, click the following link: Buy Call Options

What is a Synthetic Short Trade? - A synthetic short is a bearish options trading strategy that is designed to mirror short selling a stock. Just like with shorting stocks, this strategy is employed when you believe that a stock price is going to fall, and you want to make a profit on the way down. If there’s a company that you believe will miss on earnings expectations, will fail to earn a big contract, a buy out offer will fall through, or it’s already trending down, this is a great strategy to use. To read the article, click the following link: Synthetic Short

How Stock Splits and Dividends Affect Options Contracts - What happens when you own an option contract and the underlying stock splits or pays a dividend? How does this affect the value of options that you own? These are important questions to know before trading options on a stock that may split or declare a dividend prior to your option contract’s expiration date. To read the article, click the following link: Splits Dividends Options

optionsXpress Review - Today, almost every online broker offers options trading for their customers. There are also several that specialize in options trading. However, we believe that optionsXpress is the best options trading broker available. OptionsXpress was founded as the first online brokerage geared specifically towards options traders. Over the course of the last 10 years, other firms have joined in, but none have been able to match optionsXpress. To read the article, click the following link: optionsXpress Review

Option Trading Tips - Get live, actionable option trading tips in real time. These are the types of trade alerts that usually cost hundreds of dollars per month in a subscription. We're offering them to you for free! To see this tips page, click the following link: Option Trading Tips

Options Trading Tutorial - More and more individual traders are turning to options as the way to profit in the stock markets. A combination of under-performance from more traditional investments, as well as looking for an opportunity to trade on the same level as the pros, has made options trading quite attractive to those who were always told they're too risky for average investors. To read the article, click the following link: Options Trading Tutorial

OptionsHouse Online Brokerage Review - OptionsHouse was founded by PEAK6 Investments in 2005. Developed and powered with PEAK6 technology. The goal of OptionsHouse is to make it possible for retail and institutional options traders to progress from basic trading, to a more professional level. OptionsHouse utilizes tools and methods derived from PEAK6′s extensive trading platforms; the same state-of-the-art technology they use to trade large-scale positions on every U.S. exchange, every trading day. To read the article, click the following link: OptionsHouse Review

Options Trading for Beginners - If you've never traded options before, or have limited experience, we can help take you from an options trading beginner to an expert in a short period of time. The best thing is, you won't have to learn through the school of hard knocks (i.e the school of trading losses). Let us show you how. To read the article, click the following link: Options Trading for Beginners

How to Make Money with Options Using the Max Pain Theory - This is a strategy for trading options that has worked well for us in the past, and we expect this method to continue generating quick profits for us in the future. This strategy will use butterfly spreads to make money in the last week before options expiration. The downside to this particular strategy is that we can only use it at a certain time of each month. To read the article, click the following link: Max pain Options

Breakthrough Technology for Options Traders - If you buy or sell an option in the right direction you can still lose money if you don’t know some simple information about that options nature. You need to determine its current implied volatility and determine if the option is over priced. This option price calculator can do the work for you. To read the article, click the following link: Option Price Calculator

Why Most Options Traders Lose Money - The number one reason why most options traders fail is they rely solely on market timing for success. If you're using options simply as a leveraging tool to make more money on the predicted movement in a stock or index, you'll have many trades go in your favor and from time to time you'll experience fantastic gains. However, if you're simply buying calls or puts based on what you expect the underlying stock to do, your odds of long term success as an options trader are very limited. To read the article, click the following link: Options Failure

Butterfly Spread Trading - Think you can peg a stock's price at expiration and want to catch a profit? Try a butterfly - its bite can be gentler than with other strategies. The Butterfly is an option position that is composed of 2 vertical spreads that have a common strike price. To read the article, click the following link: Butterfly Spread Trading

With Options Trading, Time is Money - The old adage that time is money holds particularly true when trading options. That’s why it’s very important to understand how theta works, and the affect it has on an option price. Theta is the Greek letter used to represent the impact of time on an option’s value. All options lose value, as they get closer to expiration. However, the rate at which an option contract loses value is primarily a function of how much time remains until expiration. To read the article, click the following link: Theta

How Implied Volatility Affects Options Prices - Have you ever bought an option, had the underlying security move the direction you hoped, and still lost money on the trade? If so, chances are you owned an option contract that saw a drop in its implied volatility. Implied volatility is an important component in the price of an option, and understanding how it affects the price of a contract can make the difference between making and losing money on a trade. To read the article, click the following link: Implied Volatility

To read articles on other subjects important to investing, trading, and the markets, click the following link: Online Trading Information