Options are interchangeable financial contracts that give the buyer the right to call or put a stock or commodity on someone based on the strike price and the underlier. Options contracts ar... Read more
In options trading, a debit spread or net debit spread play is created when a trader both buys an option with a higher premium and sells an option with a premium that is lower in price at th... Read more
A reverse conversion option play is a type of arbitrage trade used to make money from selling the option premium of a put option that is priced too high but is structured in a way that profi... Read more
A bearish credit spread refers to an option play constructed so the value of the spread position increases if the price of the underlying stock falls. A bearish credit spread is constructed... Read more
In trading Delta hedging is a way to structure an option play to decrease or even eliminate the directional risk exposure of a stock holding or other option contracts. Stocks and options hav... Read more
A put option contract gives the buyer of the contract the right to sell the underlying asset at the strike price of the put on the day of expiration and assignment. When writing a put optio... Read more
Here is an Option Greeks cheat sheet you can use as a quick reference guide. For those not familiar with option pricing it can also be an educational guide as well. For more about option Gr... Read more
If you are interested in trading options the before you start you need a good understanding of what determines the contract price. Understanding what factors determine an options value and h... Read more
A risk reversal option strategy play is a position that is constructed by selling short an out-of-the-money put options and also buying long an out-of-the-money call option that both have th... Read more
Here is the option play strategy guide from my Options 101 eCourse. The columns give the names of the option play and the sentiment that an option trader would have when they open the posit... Read more
