More answers to common options questions including: What Are The Advantages/Disadvantages Of Vertical Spreads and What Is The Risk Of Selling An Out-Of-The-Money Covered Call?
Frequently Asked Questions About Options: Part 6
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Frequently Asked Questions About Options: Part 5
More answers to common options questions including: What are the similarities/differences between futures and options contracts & How do LEAPS differ from conventional options?
Frequently Asked Questions About Options – Part Four
More answers to common options questions including: How do I find an options broker, What is an options exchange And How do I get started trading options?
Frequently Asked Questions About Options: Part 3
More answers to common options questions including: Can I trade options in my IRA? How do ESOPS differ from standard options? What is the difference between American-style and European-style options? And more…
Frequently Asked Questions About Options: Part Two
More answers to common options questions including: "What Is Liquidity and "What Do "Buy to Open" And "Sell To Close" Mean?
Frequently Asked Questions About Options
Can Options Be Traded On Any Listed Stock? Is Increased Open Interest Bullish? How Is Open Interest Calculated?
Demystifying Options: Know Your Greeks – Part 3
Taking another look at Theta, Vega & Rho
Demystifying Options: Know Your Greeks – Part Two
Gamma: How Quickly the Odds Change…
Demystifying Options: Know Your Greeks
Delta, Gamma, Theta, Vega and Rho – you are likely to hear these "Greek" risk measures whenever traders talk about options. Although these terms sound complicated, they actually are easy to understand once you grasp a few basic concepts. Mastering them will give you a good understanding of why options behave the way they do under different circumstances.
Demystifying Options: Explaining Put/Call Parity – Part Two
"Fine," you might say "that's the theory, but is it the way options really trade?" The answer is "yes." The reason is that when call or put time premiums get out of line with each other, option market makers can make a risk-free arbitrage profit.
Demystifying Options: Explaining Put/Call Parity
This week, we review what are known as the put/call parity rules. If you know one rule – and you remember your high school algebra – you can quickly master all the rules. Mastery of these rules gives you a lot more flexibility when planning your options strategies.
Credit Spreads As Naked Write Alternatives – Part Two
When you create bull put spread that is based on one of our "naked" put writing recommendations, you need to select a put that is reasonably close-to-the-money. You then need to find a put of the same expiration with a strike price that is both lower and further from the stock price than the recommended short put..