
What Is a Butterfly Spread in Options?
Introduction A butterfly spread is an options strategy that uses three strike prices to create a position with a peak profit at one specific price point and…

Introduction A butterfly spread is an options strategy that uses three strike prices to create a position with a peak profit at one specific price point and…

Introduction A diagonal spread is an options strategy that combines two legs at different strike prices AND different expiration dates. It sits between a…

Introduction A calendar spread — also called a time spread or horizontal spread — is an options strategy that sells a near-term option and buys a longer-dated…

Introduction A risk reversal is an options strategy that combines a long out-of-the-money call with a short out-of-the-money put (or the reverse), creating a…

Introduction $2,000 per month from automated options trading is a specific income target — and whether it's achievable depends entirely on account size,…

Introduction No options strategy is risk-free, but some are far better suited for consistent monthly income than others. The strategies that hold up over time…

0DTE options — zero days to expiration — are options that expire on the same day they're traded. They've grown from a niche tool used by experienced traders…

A broken wing butterfly is an options strategy that modifies the standard butterfly spread by widening one wing — either to collect a credit at entry or to…

The 21 DTE rule is a time-based exit rule for options positions: close any open options position at 21 days to expiration if neither a profit target nor a…

DTE stands for Days to Expiration — the number of calendar days remaining until an options contract expires. The 45 DTE entry rule is the most widely cited…

Yes — you can trade iron condors in an IRA. Iron condors are defined-risk spreads, meaning their maximum loss is strictly bounded by the width of the spread.…

Portfolio margin (PM) is a risk-based margin methodology that calculates requirements based on the actual risk of your overall portfolio, not fixed…