Guides
Options strategy guides
Plain-English guides to option strategies and risk, each drawn on a risk graph. Every example uses illustrative model prices.
Strategy guide · 7 min read
The iron condor, drawn on a real risk graph
The four legs, the credit, the max loss and the break-evens of an iron condor, worked through one example.
Read ›Desk notes · 7 min read
Pricing the bad day: how the crash band works
A fall with volatility spiking hits options harder than a quiet fall. The crash band prices that bad day.
Read ›Strategy guide · 7 min read
Calendars, read at the front expiry
A calendar sells time and owns time. Here is why its payoff is a tent, read at the front expiry.
Read ›Strategy guide · 7 min read
The covered call, with the shares on the graph
Own 100 shares, sell one call: what you collect, what you give up and what risk stays, worked through one example.
Read ›Desk notes · 7 min read
From a Greek to a trade: the target delta helper
Delta in shares, position delta by hand, and the trade that moves a position to a target delta.
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