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Understanding the Basics of Trading Put and Call Options
Options can be used to make directional bets on a market, to hedge a long or short position in the underlying asset and to...
Are you diversified? When considering the question, the first thought that comes to mind is the importance of having a diversified portfolio. Diversification is frequently...
What is a Long Strangle? The long strangle is quite similar to the popular straddle spread, the only difference is that the straddle involves...
The Costless Collar Explained In Detail Stock investors are exposed to downturns in share prices and often use options to protect against major losses....
Let’s look at a couple of examples: Out Of The Money Call Option Suppose a trader owns a 140 IBM Call Dec 20 call...
‘Moneyness’ considers the strike price of an option versus the current stock price. If exercising the option produces a ‘better’ result than if...
Options Spreads Combinations Explained For example a trader may sell one AAPL 170 call and buy one AAPL 160 call, a type of call...
It’s important to know what these terms mean. In addition, you should know under what circumstances you should buy to open and when you...
(We have similar post on the opposite trade: Buy To Open vs Buy To Close) What Is Sell to Open In Options Trading?...
The answer is the Synthetic Covered Call. What Is A Synthetic Option Strategy? A synthetic covered call is an options position equivalent to the covered...
In this case, what is being mimicked is a long position on a stock by selling a put and buying a call at the...
This article was written by Chris Young and was first published on Epsilon Options (now part of SteadyOptions). The Options: Greek Vega Explained...