optionsguy’s Blog posts
A Guide to Covered Call Writing
Brian Overby provides an introductory guide to writing covered call option strategies. Along with a real example of a covered call, Brian covers the pros and cons of writing a covered call vs... more
What Does Volatility Mean to Stock and Option Traders?
Brian Overby provides an explanation of volatility as it relates to stock and option trading. Along with an overview of the differences between historical and implied volatility, Brian pro... more
Quarterly Options: More than a Nickel's Worth of Interest
TradeKing's Brian Overby discusses the in's and out's of "quarterly options", a new options type that's gaining steam recently. Hello, folks. Not too long ago I blogged about the relatively new... more
Advanced Options Plays for Wild Markets
This post explores an advanced option play, the upside-down iron condor, as a potentially profitable one for volatile options markets. Recently a TK client, with trader network name Sta Te Bo... more
Weeklys Options: Every Week is Expiration Week
TradeKing Sr. Options Analyst Brian Overby gives the scoop on the expansion of WEEKLYS options: Options Listed with One Week to Expiration. Have you checked out weeklys yet? These option contracts... more
BP Calendar Butterfly: Saga is Ended
Brian Overby recaps the story of a calendar butterfly trade, post-exit. Remember the calendar butterfly on British Petroleum (BP) we discussed last week? Well, that saga is now complet... more
Rolling that Calendar Butterfly on BP
Today's post explores an advanced options topic: how and when to execute a "roll" on calendar butterflies. This example takes British Petroleum (BP) as its sample stock. As we've all hear... more
Should you "straddle" your way thru big market swings?
When market direction is uncertian, but conditions are anything but calm, what's an option trader to do? Two strategies that might fit are straddles or strangles. However, be forewarned: thes... more
When Volatility Soars, Think Butterflies
The VIX is a real roller-coaster these days. No sooner had I blogged about trading ideas when volatility is plunging (see my post How can you trade the plunging VIX?), then market sentiment swung ... more
Let the AFLAC duck school you in put selling
When you're feeling bullish, you're likely familiar with buying calls or going long stock. But what about cash-secured put selling? TradeKing's Brian Overby uses AFLAC (AFL) as an example... more
How can you trade the plunging VIX?
When the Volatility Index (VIX) plunges, what's an options trader to do? TradeKing's Options Guy discusses views on what a falling VIX means and trades suitable for a low-volatility market environm... more
Why do options strategies have such funny names?
Why do options strategies have such funny names like "iron condor" or "naked strangle"? Today's post discusses the origins of options' very colorful terminology. If you've ever wondered at th... more
Trading Around Financial Rules Reform
Today's post reviews how investors can factor pending financial regulatory reform into their trading. I spoke to Reuters recently on a very timely topic: with all the public discussion about f... more
The CBOE Goes IPO (Finally!)
Today's post discusses the impending IPO of the CBOE, the U.S.'s largest options exchange, and what it might mean for investors. Here comes a new way for investors to invest in options trading - wi... more
How do "market circuit breakers" impact options traders?
Today's post explores how recently proposed "circuit breakers" could impact options trading and provides tips for how traders can prepare. Recently the Securities and Exchange Commissio... more
What happens to your spread at expiration?
Today's post explores a question frequently asked by new options traders: what can happen to your options spread at expiration?I got a great question from TK client 96V4Z9PHB9, who was kind enough ... more
How to Prey on Executive Pay
Today's post explains how to use CEO pay-packages as a guide for timing your stock buys.Some of you have checked this out in the TradeKing forums out already, but if you haven't done so alr... more
The Stocks Vs. Options Disconnect
Today's post explains how signals from the options market - especially the Volatility Index, or VIX - may signal bearish times to come in stocks. It's worth taking a read through this article... more
Rho, Rho, Interest Rates...
In this back-to-basics series Brian Overby reviews the Greeks, factors to help you gauge the impact of various changes on option contract prices. Today's post continues a discussion on Rho, th... more
Stocks: Time to Consider the Defensive Option
Are you ready for a market rainy-day? In this post Brian Overby explains how put options can provide downside protection to your investment portfolio. I had a great talk with BusinessWeek repo... more
