The Wheel Options Strategy or the Triple Income Strategy is an option play where an option trader tries to profit from a trade on a single stock in three different ways. Step 1 is where the... Read more
In option trading a straddle play is created when two option trades are opened in the same underlying asset at the same strike price at the same expiration date but with both a call and a pu... Read more
A ‘Poor Man’s’ Covered Call option play is a way for an option trader to structure a very similar type of risk/reward ratio as an ordinary covered call but with much less capital... Read more
In Black–Scholes option pricing model, the implied volatility or ‘IV’ of an option contract is the cost embedded in the option of the volatility of the underlying instrument that... Read more
The Maximum Pain theory in the options market or simply ‘Max pain’ tries to explain that market prices for stocks and commodities will many times settle at the approximate price... Read more
Open interest quantity shows the total number of active contracts in each strike price and expiration date. Open interest is one of the columns displayed in an option pricing chain along wit... Read more
A put option contract gives the buyer of the contract the right to sell the underlying asset to the seller of the option at the strike price on the day of expiration. The put buyer has the r... Read more
In the world of finance, intrinsic value is the true, inherent, and essential value of a specific asset independent of its quoted price in a market. In speculation prices can become far remo... Read more
Options trading is when you buy and sell contracts that give you the right to purchase or sell a block of an underlying asset at a set price during a specific time frame. Options are not ass... Read more
A zero sum game is a situation where one person’s gain is equal to another person’s loss, so the total money inside the game for the players and participants is always a net change of zero... Read more
