Category: Options

call options explained

Call Options Explained

A call option provides the buyer the right, but not the obligation, to buy a stock at the specified strike price by the expiration date.

Understanding Stocks vs. Options

Stocks and options are two common ways to participate in the stock market. They have different risk profiles and different potential outcomes.

Options Trading: A Beginner’s Guide

Options are used for many different purposes and can be applied to stocks, futures, currencies and more. Options trading is one of the most complicated forms of investing there is.

Implied Volatility Crush

There are several concepts that are very important to understand when trading options. These include bid-ask spreads, the greeks, and Implied Volatility (IV). This article

Understanding Unusual Options Activity

Unusual Options Activity involves option contracts being traded at a much higher volume than their daily average. Large volume on option contracts can indicate that someone is making a bet based on transparent or non-transparent catalysts.

Bid-Ask Spread for Options Trading

The bid price for an option is the highest price a buyer is willing to pay for that option while the ask price is the lowest price a seller is willing to sell their option.

Short Term Vs. Long Term Options

To further understand the difference between short term and long term options, it’s useful to first understand that an option contract is made up of intrinsic and extrinsic value.

Long Term Leap Option Strategy Investing

A very popular strategy used by value investors is purchasing leap option contracts. Generally, options are a powerful tool for both building capital and hedging existing plays.

Understanding Greeks in Options Trading

If you’ve ever looked at an option chain, you’ve likely seen some strange words attached to the contracts you’re looking at.  Delta, Theta, Gamma, and

Volatility order flow in options

Options are something many retail investors don’t mess with. Either from impatience, losses, lack of knowledge, or it doesn’t fit their personal risk parameters.

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