Many investors write puts because they are willing to be assigned and acquire shares of the underlying stock in exchange for the premium received from the put's sale. For this discussion, a put writer's position will be considered as "cash-secured" if he has on deposit with his brokerage firm a cash amount (or equivalent) sufficient to cover such a purchase.
After going through the basic options information on this site, you should now have a solid understanding of what a stock option is, what LEAPS are and what factors contribute to an options value…
"The Greeks" are a collection of statistical values (expressed as percentages) that give the investor a better overall view of how a stock has been performing. These statistical values can be helpful in deciding what options strategies are best to use.
Overviews of options volatility and the groundbreaking Black-Scholes formula.
The versatility of index options stems from the variety of strategies available to the investor. Index puts are useful if you are anticipating a decline in the broad market or market sector measured by the underlying index in the near future. These products are also useful if you want to take an aggressive position with a great deal of leverage.
The versatility of index options stems from the variety of strategies available to the investor.
The versatility of index options stems from the variety of strategies available to the investor.
Breaking Down AM vs. PM Settlement & American vs. European Exercise.
The Nuts & Bolts of Index Options
Equity vs. Index Options
You have to master the underlying before you can start trading index options…
Like equity options, index options offer the investor an opportunity to either capitalize on an expected market move or to protect holdings in the underlying instruments. The difference is that the underlying instruments are indexes. These indexes can reflect the characteristics of either the broad equity market as a whole or specific industry sectors within the marketplace.