A synthetic share of a stock is created by buying and selling stock options to simulate an options play that moves the same way that holding shares in the stock would move without the same amount of capital needed to buy the same amount of share... Read more
A diagonal spread options play is a modified calendar spread that is built with different strike prices. It is opened by entering into a long and short position in two options of the same type at the same time. An option trader can use two call... Read more
This is a guest post from Gavin McMaster @OptiontradinIQ Searching for income has become a challenge. Bonds have been a traditional conservative income stream for decades. Yet, bond yields are now trading at historic lows. This has led some inve... Read more
The jade lizard is an option play that is created by opening a bearish vertical spread using call options and adding a put option sold at a strike price lower than the call spread strike prices. Using one underlying stock with the same expiratio... Read more
Call options are in the money when the underlying stock that it is written on has a price higher than a the call option strike price. A call option can be used to call away a stock at the price of the strike with the profits being how much highe... Read more
Most traders that are profitable over the long term possess a distinct set of trading skills that separate them from the majority of traders that do not make money. Consistent success is a result of a systematic process that possesses an edge ov... Read more
A list of the current most shorted stocks can be a great place to start for potential deep dip value buys. Stocks with the highest short interest across all major U.S. stock exchanges is a good list to watch for potential huge bounces when there... Read more
Option traders who believe the price of an underlying asset will not change significantly in the near future can sell short combinations of options that have different directional biases and strike prices. A short strangle is an option play desi... Read more
Traders who strongly believe the price of an underlying asset will change significantly in the near future but are unsure about the direction of the move can trade combinations of options that have different directional bias and strike prices. A... Read more
The delta of a stock is always 1.00 because delta is the variance of movement of a stock versus an option contract. The delta of an option is the magnitude of the move in the underlier that the option will capture currently based on the odds of... Read more
