Same-day expiration (0DTE) options are extremely active, with heavy volume attracting skilled traders. For example, recent $Tesla Motors(TSLA)$ 0DTE contracts saw very strong trading activity. But alongside these opportunities come serious risks. 📘 If you want to explore how to trade them, start with The Options Handbook for a deeper dive. (And join the events at the end to win rewards!) 🎁 ▶ Racing Against Time ⏰ Time doesn't always pass at the same speed, at least not in options. The closer you get to expiration, the faster that "extra" value in an option disappears. For option sellers, this often means you don't have to hold your position for long, and

In options trading, you’re not just limited to buying—you can be the seller too! Take Sell Call as an example: once you sell a call, your position shows “-1”. Many beginners stumble when it comes to the seller’s role. That’s why the Options Handbook breaks it down clearly— ▶ Welcome to the Writer's Seat! You can sell an option in the options market even if you do not own one. Like short-selling stocks, you do not need to hold the asset to trade it. In fact, selling an option is simpler than shorting a stock; you do not need to borrow anything. Instead, you "write" the option, which is why selling options is often called writing options. ▶ How It Works? You post a sell order for an option on the pl

$英伟达(NVDA)$ stock gained 2.1% on Wednesday. Morgan Stanley analysts are confident the stock has more to gain, raising their target price to $200 from $170. Nvidia is a classic case of a large-cap, highly liquid stock with clear fundamentals—making it one of the most popular underlying stocks for options trading. Whether you're bullish, bearish, or neutral, options offer strategies to express your market view! ▶ Bullish on Nvidia? You could buy a $185 Call expiring Aug 15 for around $2.76. If the stock climbs past $185, your option is in the money. Your breakeven is $187.26 — anything above that means a profit. Or exit early and take profits anytime. ▶ Prefer selling? You could write a $185 Call expiring Aug 15 and pocket $2.76 in premium. If Nvidi

When big events hit, stock volatility jumps — but each stock moves on its own. To see the market’s overall “temperature,” traders watch the VIX (Volatility Index). 📘 In The Options Handbook, you’ll find a full breakdown of the VIX: ▶ What is VIX? 💡 Nicknamed the "fear index," the VIX measures market expectations for volatility over the next 30 days. It's calculated using $S&P 500(.SPX)$ index options. High VIX (>30) = the market is in panic mode. Investors buy protection, and option prices jump. Low VIX (<15) = the market is calm or overconfident. Risk feels cheap, and so do options. Historically, sharp spikes in the VIX often align with signif

Ever struggled with this dilemma: buying an option costs too much, but selling an option alone feels way too risky? Don’t worry! With vertical spreads, you can cut costs, cap losses, and trade with confidence. In The Options Handbook, you’ll find four main types of vertical spread strategies. Let’s take a look! (And join the events at the end to win rewards!) 🎁 ▶ What is a Vertical Spread? 🤔 A vertical spread means buying and selling options on the same stock, with the same expiration date, but at different strike prices. In this way, you profit from price movements in the underlying stock while using the premium you collect from selling one option to offset part of the cost of buying the other. ▶

If you’re bullish on a stock for the long run but don’t want to commit a big chunk of capital upfront, is there a smarter way to join the upside?🤔 Absolutely. The Options Handbook introduces the LEAPS Call strategy, which might be just what you need! ▶ What is a LEAPS Call? LEAPS (Long-Term Equity Anticipation Securities) are just what they sound like: stock options with a long runway, typically expiring more than a year out, sometimes two years or even longer. For example, in 2025, you could buy a LEAPS option that expires in January 2027. In plain English, a LEAPS call lets you control a stock's upside for a fraction of the price, instead of coughing up the full amount to buy shares outright. ▶

When an option is close to expiration and it’s in the money (ITM, meaning it has intrinsic value), exercise may occur. So, what exactly happens if an option is exercised? 👉 Let’s see how The Options Handbook explains exercise from both the buyer’s and the seller’s perspective — ▶ Buyer’s Perspective For Call (or Put) buyers, exercising is all about buying (or selling) the underlying stock at the strike price, which does require some real capital or stock. If you plan to exercise, pay attention to these three points to avoid unwanted outcomes: 1. Cash or margin required 💰 Exercising a call requires real funds, 100 shares × the strike price. If you don't have sufficient funds in your account, your b

As of August 11 (Mon), $Tesla Motors(TSLA)$ ’s Implied Volatility (IV) stood at 52.11%, while Historical Volatility (HV) was 46.24%. That’s why we believe Tesla options are relatively expensive. But why is that? 🤔 📘 Let’s see how The Options Handbook explains it: ▶ Using IV/HV to Judge Option Pricing 📊 You can use the IV/HV ratio to gauge whether an option is expensive or cheap: Ratio > 1 → IV is relatively high → options are pricey (like Tesla now) Ratio < 1 → the opposite For example, Tesla’s Aug 15, expiry $337.5 strike Call has an IV of 50.96% and an HV of 46.24%. The IV/HV ratio is above 1. This confirms the option is relatively expensive. As f

In the options market, time decay is a key profit driver for sellers. That’s why selling near-expiration short-term options (a.k.a. expiring options) has become such a popular quick-hit strategy. Want quick wins from expiring options? The Options Handbook shares key tricks to boost your odds—plus the risks to watch. (And join the events at the end to win rewards!) 🎁 ▶ Give Your Odds a Boost with IV 🚀 Bigger Premiums: When IV is high, option prices shoot up. As a seller, you collect more premium, like charging extra for umbrellas on a rainy day. Faster Time Decay: High IV doesn't just mean fatter premiums; it also means those premiums melt away even faster as expiration approaches. So, you can pock

Dividends aren’t just good news for shareholders. In the options world, Put (bearish) buyers also benefit—even though they don’t own the stock.🙋‍♂️ 📒 In The Options Handbook, the answer is pretty clear: ▶ Ex-Dividend Day Pushes Stock Prices Down 🏦 When a company pays dividends, the stock price usually drops on the ex-dividend date. ▶ Lower Stock Price = More Valuable Puts 📈 A falling stock price boosts the intrinsic value of Put options. For long-term bearish strategies—especially on high-dividend stocks—higher dividend yields mean your Put contracts become even more valuable. 🛒 Want more insights like this?

Why does the options trading screen show “US” and “EU”? 🤔 It all comes down to option style—American vs. European. Despite the names, this has nothing to do with where the options are traded. It's not about geography, but when the option can be exercised! Here’s how the Options Handbook breaks it down: ▶ Exercise Timing ⏰ American-style options: It can be exercised at any time from the day you buy them until they expire. More flexible, and most retail traders deal with American-style options. European Options: It can only be exercised on the expiration date, not before. Easier to value for pricing models. ▶ Common Types 📝 In most cases, options on individual stocks and ETFs are American-style, wh

For traders who have a clear view of market direction but don’t want to take on too much risk, the vertical spread is a smart options strategy. It lowers costs and manages risk—but there are still key points to keep in mind to make sure everything goes smoothly. This chapter from The Options Handbook highlights 9 essentials about vertical spreads! (Don’t miss the mini challenge at the end! 🎁) ▶ When to Use Vertical Spreads Limited Funds, But Want to Trade Options: Vertical spreads cost less than buying options outright. You Have a Market View, But Aren't Sure About Volatility: Even if the stock doesn't move much, you can still profit. High Implied Volatility (IV): When buying options is too expens

Every trader has their own little quirks, and once you start trading options, some of those habits may begin to change. Have you noticed any small shifts in yourself? 🤔 Maybe you suddenly became hyper-aware of time ticking down? Or maybe your trading frequency shot up, turning into quick ins-and-outs? Or perhaps you found yourself glued to all those Greek letters...? Options definitely have a different vibe compared to the stock market—sometimes it feels like options are changing you! 💭Let's discuss: What’s different for you since you started trading options? And how has it changed your mindset, lifestyle, or trading style? Drop your story in the comments! For example: 📌 Since I got into options, I have to check the volatility curve morning, noon, and night, like clocking in at work. I mos

In options trading, Vega shows you how option prices react to volatility, not just price moves. Around different scenarios, it becomes your guide. Let’s see how The Options Handbook explains Vega📖 ▶ What Vega means Vega measures how your options react to changes in implied volatility, the market's pricing of uncertainty, not just price direction. Example: If a $Wal-Mart(WMT)$ option has Vega of 0.064, then a 1% change in IV moves the option price by about 0.064. ▶ Before earnings / big events Buy high-Vega options. Even if the stock price stays flat, rising IV can lift option prices. ▶ After earnings Sell high-Vega options. Once the event passes, IV usuall

We already know that indicators like IV/HV can tell us whether an option’s implied volatility (IV) is high or low. So here’s the next question: how can you capture opportunities as IV moves up and down? And does high IV favor buyers or sellers? 🤔 📘 Let’s see how The Options Handbook explains IV: ▶ IV Is Cyclical and Emotional Implied volatility isn't random; it usually moves back toward its average over time, fluctuating between market anxiety and calm periods. When markets panic, IV can shoot through the roof, but it rarely stays there. For example, $NVIDIA(NVDA)$ saw its IV surge to 93.39% on April 8 this year, then drop by 40% just days later. When thi

Unlike stocks that only profit from one direction, options shine because of their combination power. The Wheel Strategy is the perfect example of this. If you’re looking for steady income while holding good stocks long term, the Wheel Strategy could be just what you need. The Options Handbook is where this smart little strategy gets its spotlight! (Don’t miss the mini events at the end. 🎁) ▶ What is the Wheel Strategy? 🔄 The core idea is simple: First, you sell put options for instant income. If you end up buying the shares, no worries, just flip and sell covered calls for more cash. Then simply keep the wheel spinning. Easy, clever, and oddly satisfying. You can generate income again and again. ▶

The Wheel Strategy makes the most of your time and is a favorite among many seasoned traders. Whether the market is going up or down, this strategy lets you generate steady cash flow by continuously selling options. If you want to give it a try, The Options Handbook sums up 4 key rules and potential risks for the Wheel Strategy! ▶ Recap: The Wheel Strategy The core idea: sell puts to collect premium, buy the stock if assigned, then sell covered calls and repeat the cycle. The previous post goes into the Wheel Strategy steps in detail. Feel free to check it out if you’re curious—we’ll keep it brief here.🙂 ▶ 4 Rules to Help You Pick Stocks 🎯 Picking the right stocks is crucial if you want your wheel