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. ▶

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?