by Profitmart Securities | Jul 1, 2025 | Stock Market
Selling options on exchange-traded funds (ETFs) provides a framework to understand how covered calls or cash-secured puts can be used to potentially generate option premiums. In a covered call, an ETF holder grants another party the right to purchase shares at a...
by Profitmart Securities | Jul 1, 2025 | Stock Market
Index options are derivative contracts granting the right, but not the obligation, to buy or sell a market index at a predetermined strike price on or before expiry. These instruments allow participants to study market-wide price movements without direct involvement...
by Profitmart Securities | Jul 1, 2025 | Stock Market
Gamma scalping is a dynamic hedging approach used to manage the changing risk profile of options positions in volatile markets. By continuously adjusting underlying hedges, traders can maintain a neutral delta exposure while capturing small profits from price swings....
by Profitmart Securities | Jul 1, 2025 | Stock Market
Multi-leg option strategies combine several option contracts to create custom payoff profiles. While common approaches like straddles or iron condors are widely known, a set of less frequent structures offers nuanced exposure across bullish, bearish, and neutral...
by Profitmart Securities | Jul 1, 2025 | Stock Market
Options traders sometimes seek structures that balance limited profit potential with reduced or asymmetric risk. Three such “uniquely layered” strategies are ZEBRAs, Jade Lizards, and Broken Wing Butterflies. Each strategy uses multiple option legs to illustrate...
by Profitmart Securities | Jun 30, 2025 | Stock Market
Earnings announcements often trigger sharp price shifts and increased implied volatility in option premiums. Understanding how these dynamics unfold can help neutralize exposure and structure trades that reflect, rather than predict, market behavior. This article...
