Covered Call or Short Put?

Covered Call or Short Put?

In my last two articles, I wrote about the equivalence between two popular option positions ? the short put (with no stock position) versus the covered call (long stock and short call). Today we?ll finish that up and talk about out-of-the-ordinary situations.

read more

Options Mailbag

Over the last few months, I?ve gotten quite a few letters with questions about the options articles. Today is a good day to follow up on some of those questions, and make some clarifications.

read more
More Than One Way to Skin A Cat

More Than One Way to Skin A Cat

In last week?s article, I wrote about creating an option position out of different ingredients. We started with a stock position, and then added a protective put for insurance. This combination is called a married put.

read more

Option Algebra

Oh no, more math? Yes, but it?s worth it, I promise. And after all, options attract math geeks, so admit it ? you?re a little curious, aren?t you?

read more
New All-Time High?

New All-Time High?

On March 14th, the S&P 500 approached to within a whisker of its all-time highs. A couple of weeks ago it appeared that Implied Volatility (IV) was finally coming up from its multi-year lows.

read more

How Do They Know That?

Looking at an option chain, the sheer volume of data appears overwhelming. Besides price information, all the Greeks are calculated for every option, continuously, in real time.

read more