Covered Write

This is also known as a Crossed Trade and it is basically a transaction/trade that is done from one broker to another ( broker to broker) rather than in the open market place. See Also Option Conversion

What is an Option Sweep? An option sweep is basically when a big trader breaks up a large order into small individual trades. This is usually done in order to get filled fast or to conceal a large order.  The common thinking is that a sweep usually means a big trader knows something and is…

With the recent move by top brokers like TD Ameritrade to eliminate commissions there have been lots of new traders opening new accounts there. A lot of these traders are coming from using apps like Robinhood which are popular for their simplicity so starting to use a new platform like TOS can be quite a challenge….

This is an Options position where the total delta exposure is zero. For example, you can create a delta neutral position like this: Since 100 shares has a delta of +1.00, if you go long 100 shares and long two Puts that have a delta of -.50 each, the position is delta neutral. See Also:…

I’ve been asked and have explained The Wheel strategy many times, so I thought it may be a good idea to write it down all in one place for posterity! This is the only options strategy I use and IMHO it is about as low risk and reliable as options trading gets. You will NOT get…

This is when you sell a call and buy a call with a higher strike price. A Bear Call Spread is used when you have a bearish outlook on a stock and you want to bet against it by going short but you don’t want to shirt the stock because it theoretically has unlimited risk….