Key Takeaways Understand the difference between puts and calls Learn the rights and obligations of buying and selling call and put options Understand the risk and […]
So you’ve got an options strategy in a stock or exchange-traded fund (ETF)—say a covered call, a naked call option, or even a multiple-leg strategy like […]
If you’ve ever flown a plane, or flown in a plane actually, you know that the captain doesn’t step into the cockpit at the last moment, […]
Volatility is like a sunset. You’ve seen one, you’ve seen ’em all, right? Well, yes and no. Sure, volatility (“vol”) means how much the price of […]
Many options traders say that they trade a consistent quantity when initiating vertical spread trades. And while this strategy might keep the contract numbers orderly, it […]
Many traders tend to gravitate to options strategies with positive theta—those in which the theoretical value increases with the passage of time. Certain positive theta spreads […]
Editor’s note: Volanthology is a multi-part series on volatility, the various means of tracking volatility and incorporating volatility assessments into trading and investment research. Part 1 […]
When trading stock, knowing the amount of capital you’re investing is as straightforward as multiplying the price of the stock by the amount of shares being […]
If you’re a millennial, you may not remember a world without computers, and maybe not even a world without cell phones or the Internet. You might […]
It used to be that option expiration occurred once a month, generally on the third Friday of the month. That all changed in 2005 when exchanges […]