Thetix Blog
Insights, analysis, and updates on options trading, market trends, and investment strategies
New Feature: Trading for Everyone
Stage ideas in a cart, review every order, and execute from the cart or right inside Thetix chat. Nothing trades automatically. You confirm every order. Trading is now live for everyone.
New Feature: Community Intelligence
Thetix now learns from the collective wisdom of the entire ThetaEdge community, so the ideas and guidance you get are shaped by what actually works for traders like you.
Rolling Covered Calls: Risk and Reward Analysis
Rolling covered calls is a trade-off, not an escape: it changes income, upside cap, and assignment risk without fixing stock risk.
Dividend Yield Effects on Covered Call Strategies
How dividend yield changes covered-call income, early-assignment risk, strike choice, and ex-dividend timing.
Zero-Cost Collars: Are They Really Free?
Zero-cost collars limit downside without upfront premiums but cap upside and carry hidden opportunity, liquidity, tax, and assignment costs.
Stop Orders for Covered Calls: When and Why
Use stop-market and stop-limit orders with OTO coordination and the 20%/10% rule to manage covered-call risk and assignment.
Covered Calls and Index Returns: Study Insights
40-year analysis: covered calls lower returns but cut volatility, improve risk-adjusted results, and earn premiums in flat or high-IV markets.
Assignment Risk vs. Exercise Risk: Key Differences
Assignment (sellers' obligation) vs exercise (buyers' choice) in options — key triggers, timing, and practical risk-management tips.
Covered Calls: Aligning Adjustments with Trade Benchmarks
Practical rules for rolling, holding, or accepting assignment of covered calls using delta, DTE and profit benchmarks.
5 Risk-Adjusted Return Formulas for Options Traders
Five risk-adjusted metrics — Sharpe, Sortino, Treynor, Jensen's Alpha, and capital-at-risk efficiency — to compare options strategies' risk and return.
Canceling vs. Replacing Open Orders: Key Differences
Compare canceling vs replacing open options orders—risks, timing, queue impact and best practices to avoid unintended fills.
5 Examples of Rolling Covered Calls Before Expiration
Five practical scenarios for rolling covered calls—how to roll up, out, up-and-out, down, or early to manage assignment and boost income.