Short Strangle A short strangle is a fairly simple options trade that is initiated when a speculator is betting on minimal price movement in the underlying security.  There are two key concepts you need to understand before diving into a short strangle -- time...

Using Options to Hedge Short Positions Using options to hedge isn’t an exclusive opportunity for long traders, with protective calls and covered puts protective strategies for short sellers. Remember, when you short shares of a stock, you borrow them from your...

Vertical Spreads One thing you’ll notice when you start to learn about options and option trading strategies is that there are a lot of them. That said, vertical spreads are some of the more basic options strategies to grasp.  Specifically, a vertical spread is one...