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Options Education

Butterfly spread options payoff diagram on dark background
Options Education8 min

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…

Bernardo Rocha
Diagonal spread options strategy on dark financial background
Options Education8 min

What Is a Diagonal Spread in Options?

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

Bernardo Rocha
Calendar spread options strategy diagram on dark background
Options Education8 min

What Is a Calendar Spread in Options?

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…

Bernardo Rocha
Risk reversal options strategy diagram showing long call and short put
Options Education7 min

What Is a Risk Reversal Options Strategy?

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…

Bernardo Rocha
Automated options trading income planning with account size calculations
Options Education7 min

How to Make $2000 a Month from Automated Options Trading

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

Bernardo Rocha
Options strategy comparison for monthly income generation
Options Education7 min

What Is the Safest Options Strategy for Consistent Monthly Income?

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…

Bernardo Rocha
0DTE options expiration chart showing same-day time decay
Options Education8 min

What Are 0DTE Options and Are They Worth the Risk?

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…

Bernardo Rocha
Options strategy diagram for broken wing butterfly on dark background
Options Education8 min

What Is a Broken Wing Butterfly Options Strategy?

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…

Bernardo Rocha
Options gamma risk chart showing sharp increase in gamma exposure below 21 days to expiration compared to the safer zone above 21 DTE
Options Education8 min

What Is the 21 DTE Options Management Rule?

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…

Bernardo Rocha
Theta decay curve showing accelerating time decay between 45 DTE and expiration with optimal entry at 45 days to expiration marked
Options Education8 min

What Is the 45 DTE Options Strategy?

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…

Bernardo Rocha
Diagram showing iron condor options strategy in a Roth IRA account with tax-free growth label and defined risk spread structure
Options Education7 min

Can You Trade Iron Condors in an IRA?

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.…

Bernardo Rocha
Comparison diagram of portfolio margin vs Reg T margin requirements showing capital efficiency gains and associated leverage risks for options traders
Options Education7 min

What Is Portfolio Margin and Should You Use It?

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

Bernardo Rocha