Why Credit Spreads Can Be an Effective Options Strategy for Directional Trades

Options Education

Why Credit Spreads Can Be an Effective Options Strategy for Directional Trades

Many options traders want to express a bullish or bearish opinion on a stock without taking on the unlimited risk of selling naked options or paying a large premium for long options. One strategy that addresses these trade-offs is the credit spread. Credit spreads allow traders to potentially profit from a directional outlook while defining […]

Retail Options Trader 4 min read

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How to get out of Yieldmax?!

Options Education

How to get out of Yieldmax?!

Yieldmax, the one basket of securities you can not escape; with dividends to die for. YieldMax ETFs have attracted income investors by offering exceptionally high distribution yields through covered call strategies. While the headline yield can be appealing, investors should remember that high income alone does not guarantee strong total returns. Understanding when to exit […]

Retail Options Trader 3 min read

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AMC a Retail Options Trader Worst Nightmare

Stock Analysis

AMC a Retail Options Trader Worst Nightmare

AMC, a movie theater chain, gained prominence in the early 2020s when it traded around $2 per share. It then surged to approximately $6–$8 per share before settling back down around the $4 range shortly afterward. During this period, both call option buyers and sellers were able to make money, but call option sellers (writers) […]

Retail Options Trader 2 min read

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