Options trading is more than mathematics and market data. It is a flexible tool for investors to hedge trades or increase portfolio return. Contrastingly to ordinary stock trading, options equip
Understanding option pricing, whether it be a single position or a multi-leg option trade, can be challenging with all the different aspects of the option pricing model. Several factors affect
Options trading can be profitable from either the buyer's or the seller's perspective. You can obtain value from them during times of certainty and uncertainty; they can also be useful
With options trading, buying options is the most straightforward route. The benefit of buying call and put options is that options amplify the underlying asset's value so that the return
The covered call strategy involves the trader writing a call option against stock they're purchasing or already hold. Besides earning a premium for the sale, with covered calls, the holder also
The short call option strategy, also known as uncovered or naked call, consist of selling a call without taking a position in the underlying stock. For those who are new
Investors that are looking to make the best returns in today’s market they have to learn how to trade options. Below are the 28 most popular option strategies, including how they
The risk reversal options trading strategy consists of buying an out of the money call option and selling an out of the money put option in the same expiration month.
The synthetic long stock position consists of buying a call and selling a put in the same month and at the same strike price. The investor who enters this strategy