Hey everyone, let's talk about a classic options strategy often called "buy-write" or simply selling Covered Calls. If you've ever felt like your stocks are just sitting in your portfolio, this strategy can be a way to put them to work and generate income. It's one of the most reliable and beginner-friendly ways to dip your toes into the world of options. To help you master such strategies, Tiger Brokers offers the "OPTIONS HANDBOOK-From Beginner to Pro" – your ultimate guide to navigating options with confidence.At its heart, think of a Covered Call like collecting rent on a house you own.You believe in your property's long-term value, but you don't expect its price to double next month. So, you rent it out, collecting monthly checks for as long as you own it. A Covered Call does the same

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

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. ▶

While LEAPS Calls offer advantages like higher capital efficiency and controlled risk compared to buying stocks directly, they are not a risk-free strategy. Factors such as time decay and IV all need to be taken into account. Don’t worry about memorizing everything—The Options Handbook has got you covered on the risks and key considerations for LEAPS Calls! (Don’t miss the mini events at the end! 🎁) ▶ Risks and What to Watch Out For Time Decay: Even though LEAPS lose value slowly, if the stock doesn't rise, your option can still shrink. Expiration Decisions: If your LEAPS call is "in the money" at expiration, you'll have to decide: exercise it, sell it, or potentially buy the stock. Volatilit

If you’re bullish on a stock’s long-term potential but don’t want to commit a lot of capital to buy shares outright, holding LEAPS Call options can be a more flexible and efficient alternative. Are LEAPS Calls right for you? And how do you pick the one that fits you best? The Options Handbook has the answers! (Don’t miss the mini challenge at the end! 🎁) ▶ What is a LEAPS Call? 📜 A LEAPS Call is a long-term option with an expiration date of more than one year—sometimes even over two years. In plain English, a LEAPS call lets you control the upside potential of a stock with less capital compared to buying shares directly. ▶ Who Is It For? 🤔 Investors who believe in a stock long-term but want to kee

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. ▶

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

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. ▶

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 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

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

Normally, if an option is out of the money (OTM), exercising it would only lead to a loss. So why on earth would anyone still do it? 🤯 📕Let’s peek into The Options Handbook for this surprising little nugget of knowledge…(Join the events at the end to win rewards!)🎁 ▶ The Usual Case: OTM Options Expire Worthless 💲 If your option expires out of the money. For instance, a call with a strike above the stock price or a put with a strike below it, it usually isn't worth exercising. In most instances, these options expire worthless and are removed from your account the following day. ▶ But Why Exercise An OTM Option On Purpose? 😦 1. Strategic Reasons In rare situations, investors may still choose to exer

In options, “settlement” means fulfilling the contract at expiration — either by delivering the asset (physical settlement) or paying the price difference in cash (cash settlement). 👉 So, which type applies to the options you trade? The Options Handbook breaks it down clearly! (Join the events at the end to win rewards!) 🎁 ▶ Cash Settlement 💵 Cash settlement applies to index options and volatility products (like VIX). No shares involved, your account is credited or debited based on the difference between the strike and final index value. Example: Your $S&P 500(.SPX)$ index option expires with a $9,000 profit. That amount is added directly to your acco

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

Once you’ve opened an options position, you really only face three possible outcomes: you can close the position early, hold it until expiration and exercise, or simply let it settle at expiration. Many beginners assume they need to hold their options until expiration. But in practice, experienced traders often close early. Why is that? 📒 Let’s see how The Options Handbook breaks it down in detail: ▶ Lock in profits or cut losses Options don't just move with the stock price. They're also affected by time decay and implied volatility. That means the option's value can change significantly even if the stock isn't moving much. ▶ Example Stock A trades at $100 You buy a Call option with a strike price

Earnings season is volatile. Many investors hold tech stocks like $NVIDIA(NVDA)$ or $Apple(AAPL)$ —sell them and risk missing the rally, keep holding and it feels like wasted time. That’s when the Covered Call strategy shines: keep your shares, sell calls, and collect steady premiums—like rent from a house even if prices don’t rise. Perfect for sideways markets. 📘 The principles of the Covered Call strategy were explained in detail in the previous post. Focusing on practical use, The Options Handbook also highlights key things to watch— ▶ What Is a Covered Call? 🤔 It involves owning at least 100 shares of a stock