OptionAutomator Options Trading Blog – [Advice, Education and More]

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Option Automator Blog List

What do you call the options trading strategy in which you buy in-the-money LEAPS and keep selling short-term out-of-the-money calls?

Good question. It's called a long call diagonal debit spread. I also believe that TastyTrade coined the term 'poor man’s covered call'. The second name really gets at the...

Q&A Trade Discovery & Evaluation

Options Trading Education

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

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...

Q&A

Options Trading Education

Why does implied volatility vary with option strike price?

Why Does Implied Volatility Vary With Option Strike Prices?In this specific example, a call IV goes up as the strike price goes down, but sometimes the IV is higher at both extremes, deep in the...

Q&A

Co-Founder Blog Options Trading Education

What should everyone know about Options Trading?

What should everyone know about Options Trading?Winning in options trading is accomplished through practice, lots of practice! If you are a new (or even slightly experienced) options...

Q&A Trade Management

Options Trading Education

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

Does Options trading drive the price movement of the underlying or vice versa?Options trading is used in three ways: Speculation, to generate income, or to hedge existing positions. In...

Q&A

Options Trading Education

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

What is 'Short' And 'CE' in Option Trading?A ‘Short’ ‘CE’ is another way of saying that you are selling or writing a call option which has European style expiration. Writing a call is a...

Q&A