Options Trading Education

Let's review how TradeStation stacks up for options trades, with an emphasis on the ins and outs of its commission prices, research and trading tools, and account minimums.

The research and analysis features available are almost as impressive as the trading platform.

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The thing is tiring, late arrivers have less money to push the stock up. Usually see a typical toppy candle: See the RSI diving. Sto 5,5 has already turned over to below 80, Sto 14,3 has hooked and threatening to drop through Buy the puts NOW. I sold way too soon. Got a few calls. You are Guest on WEB8. Beerworld , smartone , jmbar2. Free - Posts Today: I almost jumped some puts, but. Tell me about it. I just like to be. There goes most of this mornings gain. I needed to get some winners after.

You did well today. Sorry several trades since this trade but sold. Significant difference over the past month. QQQ puts Sept 28's the 's. Had to, traded the moves with the announcement. You all know a. The short straddle is an undefined risk option strategy. Credit received from opening trade How to Calculate Breakeven s: Subtract initial credit from Put strike price - Upside: Add initial credit to the Call strike price.

With straddles, it is important to remember that we are working with truly undefined risk in selling a naked call. Implied volatility IV plays a huge role in our strike selection with straddles. The higher the IV, the more credit we will receive from selling the options. A higher credit ultimately means we will have wider breakeven points, since we can use the credit to offset losses we may see to the upside or downside. At the end of the day, a larger relative credit results in a higher probability of success with this strategy.

Our target timeframe for selling straddles is around 45 days to expiration. Our studies show this is a great balance between shorter and longer timeframes.