The Options & Futures Guide

Learn option trading and you can profit from any market condition. Understand how to trade the options market using the wide range of option strategies.

Discover new trading opportunities and the various ways of diversifying your investment portfolio with commodity and financial futures.

To help you along in your path towards understanding the complex world of financial derivatives, we offer a comprehensive futures and options trading education resource that includes detailed tutorials, tips and advice right here at The Options Guide.

Option Basics:
What are Stock Options?

Before you begin trading options, you should know what exactly is a stock option and understand the two basic types of option contracts - puts and calls. Learn how they work and how to trade them for profits.... [Read more...]

Beginner Strategy:
Covered Calls

The covered call is a popular option trading strategy that enables a stockholder to earn additional income by selling calls against a holding of his stock.... [Read more...]

Stock Option Trading Basics:
Why Invest with Options?

For the short to medium term investor, stock option investing provide an additional suite of investment options to let him make better use of his investment capital.... [Read more...]

Option Trading Advice:
How a Low Commission Broker Can Increase Option Spreads Profits by 50% or more

Many options traders tend to overlook the effects of commission charges on their overall profit or loss. It's easy to forget about the lowly $15 commission fee when every profitable trade nets you $500 or more. Heck, it's only 3% right?.... [Read more...]

Option Trading Basics:
Getting Started in Options Trading

To start trading options, you will need to have a trading account with an options brokerage. Once you have setup your account, you can then place options trades with your broker who will execute it on your behalf.... [Read more...]

Site Feature:
Options Strategy Search Engine

Profit graphs are  visual representations of the possible outcomes of options strategies. Profit or loss are graphed on the vertical axis while the underlying stock price on expiration date is graphed on the horizontal axis.

A quick way to scan for option trading strategies is by using profit graphs....

Stock Option Advice:
Buying Straddles into Earnings

Buying straddles is a great way to play earnings. Many a times, stock price gap up or down following the quarterly earnings report but often, the direction of the movement can be unpredictable. For instance, a sell off can occur even though the earnings report is good if investors had expected great results....[Read more...]

Advanced Concepts:
Understanding Option Greeks

When trading options, you will come across the use of certain greek alphabets such as delta or gamma when describing risks associated with various options positions. They are known as "the greeks".... [Read more...]

Stock Options Advice:
Effect of Dividends on Option Pricing

Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date....[Read more...]

Advanced Concepts:
Put Call Ratio - What It Is and How to Use It

Learn about the put call ratio, the way it is derived and how it can be used as a contrarian indicator.... [Read more...]

Stock Option Advice:
Day Trading using Options

Day trading options can be a successful, profitable strategy but there are a couple of things you need to know before you use start using options for day trading.... [Read more...]

Advanced Concepts:
Futures Options Trading

Another way to play the futures market is via options on futures. Using options to trade futures offer additional leverage and open up more trading opportunities for the seasoned trader.... [Read more...]

Stock Options Tutorial:
Writing Puts to Purchase Stocks

If you are very bullish on a particular stock for the long term and is looking to purchase the stock but feels that it is slightly overvalued at the moment, then you may want to consider writing put options on the stock as a means to acquire it at a discount....[Read more...]

Stock Options Advice:
Leverage using Calls, Not Margin Calls

To achieve higher returns in the stock market, besides doing more homework on the companies you wish to buy, it is often necessary to take on higher risk. A most common way to do that is to buy stocks on margin....[Read more...]

Stock Option Tutorial:
Dividend Capture using Covered Calls

Some stocks pay generous dividends every quarter. You qualify for the dividend if you are holding on the shares before the ex-dividend date....[Read more...]

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