Structuring a position and getting in and out of it well.

84 articles in this section of the Journal, grouped by topic. Every one is free to read.

Options Strategy 23

  • 1DTE SPY Scalp MechanicsA 1DTE SPY options scalp is a fast, high-leverage trade with a brutal decay clock. Here is how the mechanics actually work — leverage, gamma, theta, and why.
  • Calendar SpreadsA calendar spread sells a near-dated option and buys a longer-dated one at the same strike to profit from time decay. Here is how it works and why volatility is the.
  • Cash-Secured PutsA cash-secured put sells a put while holding enough cash to buy the shares if assigned. Here is how it works, why it's 'getting paid to set a limit order,' and the.
  • Covered Calls, ExplainedA covered call sells a call against stock you own to collect premium. Here is how it works, the income-vs-upside trade-off, and the risk that's often underestimated.
  • Credit vs Debit SpreadsA debit spread pays to open and profits from a move; a credit spread collects premium and profits from time and staying out of the way.
  • Delta-Neutral TradingA delta-neutral position has net-zero directional exposure, so it profits from volatility, time, or volatility changes rather than which way the…
  • Diagonal SpreadsA diagonal spread combines different strikes AND different expirations — a hybrid of a vertical and a calendar spread. Here is how it works and why it offers a.
  • Gamma Risk on 1DTEOn 1DTE options, gamma is high — meaning delta, and your directional exposure, changes rapidly with small moves. Here is why that's the defining risk of short-dated.
  • Naked Options RiskSelling a naked (uncovered) option collects premium but leaves you exposed to potentially unlimited or very large losses if it moves against you.
  • Poor Man's Covered CallA poor man's covered call replaces the 100 shares of a covered call with a deep-in-the-money LEAPS call, then sells short-term calls against it
  • Ratio SpreadsA ratio spread buys and sells an unequal number of options — often selling more than you buy
  • Rolling OptionsRolling means closing an option position and reopening it at a different strike or expiration — to extend time, adjust a strike, or manage a trade. Here is how it.
  • Straddles & StranglesA straddle or strangle buys both a call and a put to profit from a big move in either direction. Here is how they differ, when they pay, and why IV can wreck them.
  • The Butterfly SpreadA butterfly is a defined-risk options structure that profits if price lands near a target strike at expiration. Here is how it's built and its high-reward.
  • The Collar StrategyA collar combines a protective put and a covered call — financing your downside insurance by selling away some upside. Here is how it works and why it's a low-cost.
  • The Iron ButterflyAn iron butterfly sells an at-the-money straddle and buys protective wings — a defined-risk bet that price pins near a strike.
  • The Iron Condor, ExplainedAn iron condor sells a call spread and a put spread to profit from a market that stays in a range. Here is how it works, when it pays, and the risk that ends condor.
  • The Protective PutA protective put is buying a put on stock you own — insurance against a drop. Here is how it works, why it's the cleanest hedge, and the cost trade-off that makes.
  • The Wheel StrategyThe wheel loops cash-secured puts and covered calls to generate ongoing premium. Here is how the cycle works, why it feels safe, and the market condition that.
  • Theta vs Gamma at ExpirationAs expiration nears, both theta (decay) and gamma (delta sensitivity) intensify — and they pull in opposite directions.
  • Unusual Options ActivityUnusual options activity is options volume that's abnormally large or aggressive relative to normal — sometimes a footprint of informed positioning.
  • Vertical Spreads, ExplainedA vertical spread buys one option and sells another at a different strike to cap both cost and risk. Here is how debit and credit spreads work and the trade-off.
  • Volume vs Open InterestVolume counts contracts traded today; open interest counts contracts still open. Together they tell you how liquid a strike is and whether activity is…

Strategy 21

Order Types 13

Trading Strategy 11

  • Breakout vs FakeoutA breakout runs; a fakeout traps and reverses. The tells are volume, the close (not the wick), and whether the level holds on a retest. Here's how to separate the.
  • Intraday Trend FollowingIntraday trend following joins a session's dominant direction and holds while structure stays intact — trading with momentum, not against it.
  • Opening Range BreakoutThe opening range breakout trades a clean break of the first 15–30 minutes' high or low, betting the day's direction follows.
  • Power Hour TradingThe final hour — power hour — brings a surge of volume, peak 0DTE gamma, and fast directional moves as the day resolves. It's opportunity and danger in equal.
  • Range TradingRange trading fades a market stuck between support and resistance — buy the bottom, sell the top, bet on the bounce.
  • Reversal vs ContinuationThe hardest read in trading is whether a pullback is a pause (continuation) or a top (reversal). Structure, volume, and key levels tell you which. Here's how to.
  • The Pullback EntryChasing a trend gets you a bad price; the pullback entry waits for a dip to a moving average or VWAP that holds, then joins the trend on the resumption. Better.
  • The VWAP Reversion StrategyVWAP reversion trades the tendency of price to snap back toward the volume-weighted average after stretching too far from it.
  • What Is Scalping?Scalping is taking many small, fast profits from short-term moves — minutes or seconds per trade.
  • Trading One Side of the Gamma FlipTwo regimes, two playbooks. Choosing one means a simpler book of rules and a number of days spent flat.
  • Room to the Wall: Sizing a Trade by Its SpaceThe stop sets the risk. The distance to the next wall sets the space. A trade with little room is carrying full risk for a short trip.

Execution 9

Exits 5

Styles 2

  • Day Trading vs. Swing TradingDay traders close positions the same day; swing traders hold for days or weeks. Here is the real difference in risk, time, and temperament - and why the 'best'.
  • Anticipating a Level Versus Reacting to ItEnter before the test for a better price and no evidence, or after it for evidence and a worse price. Each style pays for what it gets.