New option traders can make many mistakes when they first start trading options. Here is a quick list on what to do and what not to do as you come…

Option contracts represent a bet on the directional price movement of an underlying stock in a defined time period. Option contracts represent 100 shares of a stock and are written…

Trading options versus stocks can be a very different experience as options are contracts and stocks are equity ownership in a company. Options are derivatives written on an underlying stock…

Gamma is the measurement of the rate of change of the delta. Gamma In Options Explained Gamma is the Greek that shows how delta will change with the underlier’s price…

Selling put options is one way to get paid to buy the stock you want at the price you are waiting on. How does selling put options work? The way…

Option contracts pricing consists of both the extrinsic value and intrinsic value that combine to create what each strike price and expiration is worth in an option chain. Extrinsic value…

What are covered puts? A covered put is created when put options are sold that correlates with a short stock position already being held or opened as a sell/write at…

How to calculate an option price A Black-Scholes Calculator can be used to figure the price (fair market value) of a put or call option contract based on the Black-Scholes…

A common misunderstanding among new option traders is that 80% to 90% of all option contracts expire worthless, so a seller of option premium will have a higher win rate…

The Sizzle Index is a feature on the thinkorswim platform that filters to find stocks that currently have an increase in the number of option contracts traded in relation to…