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Advanced Options Strategies: Spreads, Condors, Calendars and Hedges

Position-level Greeks, vertical spread mechanics, iron condors and strangles, calendars and diagonals, butterflies, portfolio hedging and a risk process for multi-leg trading. Full P&L tables, Greeks tables and worked numbers throughout, including what goes wrong in a tail. No hype.

Module 1: Thinking in Greeks at the position level

Net delta, gamma, theta and vega of a spread and a whole book, delta-neutral adjusting, gamma risk into expiration, and vega exposure by structure.

  1. The net Greeks of a position11 min
  2. Delta-neutral and adjusting11 min
  3. Gamma risk near expiration11 min
  4. Vega by structure and the portfolio Greeks table12 min

Take the module quiz

Module 2: Vertical spread mastery

Strike selection by delta, width versus probability, credit and debit equivalence, the 50% profit rule, rolling, early assignment and dividend risk on the short leg.

  1. Strike selection by delta11 min
  2. Width, probability, and credit-debit equivalence12 min
  3. Managing at 50% profit, and rolling12 min
  4. Early assignment on the short leg, and dividend risk11 min

Take the module quiz

Module 3: Iron condors and strangles

Construction from the expected move, IV-rank entry filters, wing width and margin, managing a tested side, when to close, and the tail that ends careers.

  1. Construction and the expected move12 min
  2. IV rank as an entry filter, wing width and margin11 min
  3. Managing a tested side, and when to close12 min
  4. Picking up nickels, and the tail12 min

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Module 4: Calendars and diagonals

Term structure, why calendars profit, earnings calendars and IV crush, the poor man's covered call as a diagonal, and what happens when the volatility curve collapses.

  1. Term structure, and why calendars profit12 min
  2. Earnings calendars and IV crush12 min
  3. The poor man's covered call as a diagonal12 min
  4. When the volatility curve collapses11 min

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Module 5: Butterflies and broken wings

Long and short butterflies, the iron butterfly, pinning, broken-wing butterflies for a credit, and low-cost directional flies.

  1. Long and short butterflies12 min
  2. Iron butterflies and pinning11 min
  3. Broken-wing butterflies and cheap directional bets12 min

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Module 6: Hedging a portfolio

Protective puts and their cost, collars, put spreads, tail hedges with far-OTM puts and their bleed, VIX product caveats, and hedge sizing by beta-weighted delta.

  1. Protective puts and the cost of insurance12 min
  2. Collars and put spreads11 min
  3. Tail hedges with far-OTM puts, and VIX products12 min
  4. Sizing a hedge by beta-weighted delta11 min

Take the module quiz

Module 7: Process and risk

Sizing by max loss and by vega, portfolio margin, liquidity and legging on multi-leg orders, the 0DTE trap, and a weekly risk review checklist.

  1. Sizing by max loss and by vega12 min
  2. Portfolio margin, liquidity, and legging risk12 min
  3. The 0DTE trap, and the weekly risk review12 min

Take the module quiz

Educational content, not financial advice.