Anheuser-Busch stock shows higher implied volatility than normal. Options traders can take advantage via a short strangle.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...

After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...

While many are familiar with buying stocks in hopes of profiting, the strategies for benefiting from price declines are often less understood. Two powerful tools in the bearish (pessimistic) ...

Short selling offers investors a unique avenue to capitalize on declining stock prices. However, this strategy demands careful consideration and a thorough understanding of market dynamics. Unlike ...

You’ve been looking to start another income stream and have your eye on a particular security. One problem: You don’t have the cash to buy it. So you’re considering diving into a short put options ...